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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>WASHINGTON,
        D.C. 20549</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">__________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
        8-K</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PURSUANT
        TO SECTION 13 OR 15(d) of the</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        EXCHANGE ACT OF 1934</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
        of
        Report (Date of Earliest Event Reported): June 16, 2005</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BERMAN
        CENTER, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
        Name of Registrant as Specified in Charter)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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              </td>
              <td valign="bottom" width="28%">
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            <tr>
              <td valign="bottom" width="32%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
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                  incorporation)</font></div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">File
                  Number)</font></div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                  No.)</font></div>
              </td>
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      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

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              <td valign="bottom" width="61%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>211
                  East Ontario, Suite 800, Chicago Illinois</strong></font></div>
              </td>
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              </td>
            </tr>
            <tr>
              <td valign="bottom" width="61%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                  of principal executive offices)</font></div>
              </td>
              <td valign="bottom" width="27%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                  code)</font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="61%">&#160;</td>
              <td valign="bottom" width="27%">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" width="61%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
                  telephone number, including area code:</font></div>
              </td>
              <td valign="bottom" width="27%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(312)
                  255-8088 </strong></font></div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" width="61%">&#160;</td>
              <td valign="bottom" width="27%">&#160;</td>
            </tr>

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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bio-Dyne
        Corporation</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>5400
        Bucknell Dr. S.W., Atlanta Georgia 30336</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
        Name or Former Address, If Changed Since Last Report)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions:</font></div>
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                <td align="left" style="WIDTH: 27pt"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></td>
                <td align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
                    communications pursuant to Rule 425 under the Securities Act
                    (17 CFR
                    230.425)</font></div>
                </td>
              </tr>

          </table>
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              </td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                  240.14a-12)</font></div>
              </td>
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              <td align="left" style="WIDTH: 27pt"><font style="FONT-FAMILY: Wingdings">o</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                  communications pursuant to Rule 14d-2(b) under the Exchange
                  Act&#160;(17&#160;CFR&#160;240.14d-2(b))</font></div>
              </td>
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              <td align="left" style="WIDTH: 27pt"><font style="FONT-FAMILY: Wingdings">o</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                  communications pursuant to Rule 13e-4(c) under the Exchange Act&#160;
                  (17&#160;CFR&#160;240.13e-4(c))</font></div>
              </td>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        2.01 </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMPLETION
        OF ACQUISITION OR DISPOSITION OF ASSETS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        June
        3, 2005, Berman Center, Inc. (f/k/a &#8220;LB Center, Inc.&#8221; and &#8220;Bio-Dyne Corporation&#8221;
        and referred to herein as the &#8220;Company&#8221;) along with LBC MergerSub, Inc., a
        Nevada corporation and wholly owned subsidiary of the Company (&#8220;Merger Sub&#8221;) and
        certain existing stockholders of the Company entered into an Agreement and
        Plan
        of Merger (the &#8220;Merger Agreement&#8221;) with Berman Health and Media, Inc., a
        privately held Delaware corporation (&#8220;BHM&#8221;), pursuant to which the Company would
        be acquired by BHM in a merger transaction wherein Merger Sub would merge
        with
        and into BHM, with BHM being the surviving corporation (the &#8220;Merger&#8221;).
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        June
        16, 2005, the Merger closed and BHM became a wholly-owned subsidiary of the
        Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Principal
        Terms of the Merger</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        the
        Effective Time of the Merger (as defined in the Merger Agreement), Merger
        Sub
        was merged with and into BHM, the separate existence of Merger Sub ceased,
        and
        BHM continued as the surviving corporation (the &#8220;Surviving Corporation&#8221;). The
        transactions contemplated by the Merger Agreement were intended to be a
&#8220;tax-free&#8221; reorganization pursuant to the provisions of Section 368(a) of the
        Internal Revenue Code of 1986, as amended. The Certificate of Incorporation
        and
        Bylaws of BHM as in effect immediately prior to the Effective Time of the
        Merger
        became the Certificate of Incorporation and Bylaws of the Surviving Corporation.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
        share of BHM&#8217;s common stock outstanding immediately prior to the Effective Time
        was converted into 1.535999487 shares of the Company&#8217;s common stock as of the
        Effective Time. The Company assumed all outstanding warrants and stock options
        of BHM exercisable into shares of BHM common stock upon consummation of the
        Merger. Each such warrant and stock option exercisable into one share of
        BHM&#8217;s
        common stock is now exercisable into 1.535999487 shares of the Company&#8217;s common
        stock. Such warrants and stock options continue to have, and be subject to,
        the
        same terms and conditions of such stock options and warrants immediately
        prior
        to the Effective Time.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the Merger Agreement, the Company deposited 2,303,999 shares of its common
        stock into an escrow account, which shall cover any claims for breach of
        representations, warranties, covenants and agreements of the Company contained
        in the Merger Agreement during the 24-month period following the closing
        of the
        Merger.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Merger resulted in a change-in-control of the Company by BHM and its
        stockholders and the assumption of BHM&#8217;s assets, operations and liabilities.
        Following the Merger, Samuel P. Chapman, Laura A.C. Berman, Allan Charles,
        Alger
        Chapman, Stuart Cornew, Jan Fawcett, Robert Goodmen and Michael Romano, each
        of
        whom are directors of BHM, were appointed to the Board of Directors of the
        Company. In addition, the Company appointed Samuel P. Chapman as the Company&#8217;s
        Chairman and Chief Executive Officer, Laura A.C. Berman as President and
        William
        McDunn as Chief Financial Officer.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the closing of the Merger, the Company reincorporated from
        the
        State of Georgia to the State of Delaware and changed its corporate name
        from
&#8220;LB Center, Inc.&#8221; to &#8220;Berman Center, Inc.&#8221;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        the press release announcing the closing of the Merger is attached as Exhibit
        99.1 to this Current Report on Form 8-K.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        the Merger Agreement is attached as Exhibit 2.1 to this Current Report on
        Form
        8-K.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        foregoing description is not a description of all of the material terms of
        the
        Merger. Investors should read the documents that are referenced in this Current
        Report for a more complete understanding of the transaction.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>THE
        COMPANY</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Berman
        Center, Inc. is a multimedia enterprise specializing in women&#8217;s health, active
        across the domains of radio, television, and print media, including books,
        magazines and newspapers. Dr. Laura Berman is a premier name in women&#8217;s sexual
        health, a leading researcher in the field and has created a multi-faceted
        platform for reaching out to consumers in a variety of settings, including
        the
        entertainment medium, product sales, medical services and online subscription
        services.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s Chicago location is housed in a state-of-the-art facility, comprising
        approximately 10,000 square feet and located in downtown Chicago near
        Northwestern Memorial Hospital and the Magnificent Mile shopping district.
        The
        Company&#8217;s clinical staff works to improve every patient&#8217;s quality of life,
        health and relationships. The Company operates a full-scale hormonal management
        clinic, counseling center and sexual function testing center, marketed through
        a
        diversified media platform based on Dr. Laura Berman&#8217;s reputation as a female
        sexual health and relationship expert. The Company anticipates entering the
        on-line dating market and the home video market in addition to supplementing
        its
        current efforts in publishing, continuing medical education courses and medical
        research. The Company also intends to open additional clinics in other large
        cities and suburbs. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>COMPANY
        HISTORY</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company was incorporated in October 1989 under the laws of the State of Georgia
        under the name William E. York, Inc. for the purpose of acquiring Bio-Dyne
        Corporation, a Georgia corporation formed in 1986 ("Bio-Dyne") and ECBB Body
        Building, Ltd., a New York corporation formed in 1979 ("ECBB"), which
        collectively manufactured, marketed and distributed multi-station home gyms,
        exercise machines, weight benches and specialty free weight
        equipment.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        November 1989, the Company acquired all of the issued and outstanding shares
        of
        capital stock of Bio-Dyne and ECBB. Following the closing of the transaction,
        Bio-Dyne was formally dissolved and a Certificate of Dissolution of ECBB
        was
        filed with the Department of State of New York. Thereafter, the Company used
        the
        trade name Bio-Dyne and in January 1991, changed its name from William E.
        York,
        Inc. to Bio-Dyne Corporation.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company ceased active operations after the filing of bankruptcy in
        1996.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        January 18, 2005, the Company changed its name to No Good TV, Inc. The Company&#8217;s
        shares were subsequently quoted on the Pink Sheets under the symbol
&#8220;NTVN.&#8221;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        May
        2005, the Company changed its name to LB Center, Inc. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        June
        3, 2005, the Company entered into an Agreement and Plan of Merger with Berman
        Health and Media, Inc. (f/k/a The Berman Center, Inc.), a privately held
        Delaware corporation (&#8220;BHM&#8221;), pursuant to which the stockholders of BHM acquired
        approximately 87% of the Company&#8217;s issued and outstanding common stock through a
        merger transaction, with the Company&#8217;s existing stockholders continuing to own
        the remaining 13% of the Company&#8217;s issued and outstanding common stock after the
        merger. The merger was consummated through the merger of the Company&#8217;s
        wholly-owned subsidiary, LBC MergerSub, Inc., a Nevada corporation, with
        and
        into BHM, with BHM being the surviving corporation. The merger was intended
        to
        be a "tax-free" reorganization pursuant to the provisions of Section 368(a)
        of
        the Internal Revenue Code of 1986, as amended. As a result of the merger,
        BHM is
        a wholly-owned subsidiary of the Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BHM
        was
        formed on January 16, 2003 and operated as a privately held Delaware limited
        liability company under the name Berman Center LLC until June 2005, when
        it
        reorganized into corporate form under the name The Berman Center, Inc. in
        accordance with the provisions of the Delaware Limited Liability Company
        Act. On
        June 20, 2005, BHM changed its name to Berman Health and Media,
        Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RECENT
        DEVELOPMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Immediately
        after the merger, the Company reincorporated from the State of Georgia to
        the
        State of Delaware and changed its name to Berman Center, Inc. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
        the merger, shares of the Company&#8217;s common stock are quoted under the symbol
&#8220;LBCT&#8221; on the Pink Sheets.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        May,
        2005, BHM began offering for sale through Hunter World Markets, Inc. on a
&#8220;best
        efforts&#8221; basis units of its common stock and warrants (the &#8220;Units&#8221;), each
        consisting of (i) two shares of its common stock, (ii) one three-year warrant
        exercisable into one share of its common stock at an exercise price of $1.05
        and
        (iii) one three year warrant exercisable into one share of its common stock
        at
        an exercise price of $1.575. The price per Unit was $1.05. In June 2005,
        2,952,381 Units were sold to certain of the selling security
        holders.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>THE
        COMPANY&#8217;S BUSINESS AND OPERATIONS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company is a multimedia enterprise specializing in women&#8217;s health, active across
        the domains of radio, television, and print media, including books, magazines
        and newspapers. Dr. Laura Berman, a premier name in women&#8217;s sexual health and a
        leading researcher in the field, has created a multi-faceted platform for
        reaching out to consumers in a variety of settings, including the entertainment
        medium, product sales, medical services and online subscription opportunities
        that the Company&#8217;s management team is in the process of capitalizing on. The
        Company has already accomplished producing its own radio show, a weekly column
        in the Chicago Sun-Times, and a monthly column in Ladies Home Journal and
        ad-hoc
        contributions to the USA Today opinion page. Dr. Berman is also a correspondent
        for Good Morning America on ABC, the star of her own reality television show,
        A
        More Perfect Union, for which the pilot episode is currently being produced
        for
        Showtime Network, the host of a recent Lifetime Network television special
        entitled Secrets of the Sexually Satisfied Woman and Co-host of Berman &amp;
        Berman on Discovery Health Channel. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Berman is the author of three books: For Women Only: A Revolutionary Guide
        to
        Overcoming Sexual Dysfunction and Reclaiming Your Sex Life, a New York Times
        Best Seller; The Secrets of the Sexually Satisfied Woman, recently released;
        and
        Passion Prescription, which she recently completed and has been accepted
        by her
        publisher, Hyperion. Dr. Berman is a source for a wide range of media outlets.
        Dr. Berman has appeared in a wide variety of magazines, newspapers, television
        and radio shows, including Oprah, CNN, Good Morning America, New York Times,
        Wall Street Journal, Fortune Magazine, Cosmopolitan, Marie Claire, Fitness,
        Redbook, and Ladies Home Journal. She also is featured in publications and
        television programs internationally. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s Chicago location is housed in a state-of-the-art facility, comprising
        approximately 10,000 square feet and located in downtown Chicago near
        Northwestern Memorial Hospital and the Magnificent Mile shopping district.
        Soothing colors and a clean, spa-like decor make the clinic an inviting facility
        for on-camera use. The clinic also serves as a tranquil, therapeutic
        environment, where the clinical staff works to improve every patient&#8217;s quality
        of life, health and relationships. The clinic is a full-scale hormonal
        management clinic, counseling center and sexual function testing center,
        marketed through a diversified media platform based on Dr. Berman&#8217;s reputation
        as a female sexual health and relationship expert. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        a well
        known and trusted brand in women&#8217;s sexual health and well-being, the Company is
        set to capitalize on a market opportunity by helping women genuinely improve
        their lives and enhance their relationships. The Company&#8217;s treatment for female
        sexual dysfunction employs a holistic approach. The clinic offers a full
        line of
        services to women with sexual dysfunction, addressing the physical,
        psychological and relationship challenges that they may face. Recent technology
        measures sexual response, genital blood flow and pelvic floor health. A
        psychosexual evaluation assesses emotional health, relationship quality and
        patient history. Based on each woman&#8217;s needs, individualized treatment plans may
        include: medical intervention (e.g., hormone therapy, topical creams, Viagra),
        individual or couples therapy, and educational recommendations. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        keeping with a holistic philosophy, the Company&#8217;s Menopause Program consists of
        four components of menopause management: customized bio-identical hormone
        therapy, nutrition, talk therapy and fitness. Yoga and Pilates promote pelvic
        floor fitness and teach stress management. In addition to medical and physical
        interventions, a psychosexual evaluation assesses current symptoms, relationship
        quality and patient history, with individual or couples therapy prescribed
        as
        needed to complement medical treatment. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Many
        women have been thrown into crisis with few options for easing the symptoms
        of
        menopause. The Company believes that there is a lack of information around
        the
        effectiveness of commercial hormone therapy and the factual risks it poses
        to
        women&#8217;s health. The Company fills this need by offering an alternative known as
        bio-identical hormone therapy. Bio-identical hormones are identical to the
        body&#8217;s own chemistry and are customized to each woman&#8217;s needs. Unlike commercial
        hormone therapy, bio-identical hormones are constantly regulated to deliver
        the
        lowest level of hormones required to relieve symptoms. The use of bio-identical
        hormone therapy is a natural treatment for menopausal complications, including
        hot flashes, sleep loss, female sexual dysfunction, mood swings, depression
        and
        night sweats.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company does not accept insurance, as the majority of the services provided
        are
        not covered by third party reimbursement. The Company&#8217;s practitioners do not
        accept Medicare or Medicaid, thereby avoiding a wide variety of legal and
        financial risks. Collection of fees for services occurs at the time of
        visit.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Omnimedia
        Platform</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Berman has a substantial media platform in television, radio and print,
        including newspapers, magazines and books. Access to so many channels for
        public
        awareness represents a substantial market opportunity. The Company believes
        that
        book publishing and radio syndication opportunities represent promising
        alternative revenue sources, and more importantly contribute to patient
        awareness and marketing. The Company believes that electronic dating, home
        videos and product and literature sales represent other promising revenue
        streams. Healthcare delivery will be both supplemented and supported by all
        other lines of business.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        coordinated media strategy, including television, radio, print media, research,
        and authorship continues to bring existence of the clinic to the attention
        of
        many women. Clinical trials and the latest research are conducted at the
        clinic
        in a for-profit setting. Dr. Berman has relationships with companies that
        manufacture drugs in the sexual dysfunction realm and has been a lead
        investigator on key research in this arena, including that study on the
        effectiveness of Viagra in women. Both drug manufacturing and consumer products
        companies have engaged the Company and Dr. Berman in an effort to develop
        research in the arena of female sexual health.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Books
        and Publishing </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Berman is a best-selling author. Her first book, For Women Only: A Revolutionary
        Guide to Reclaiming Your Sex Life achieved a top ranking on the New York
        Times
        Best Seller&#8217;s List when it was released in 2001, and is now available in
        paperback. Her second book, Secrets of the Sexually Satisfied Woman, was
        just
        promoted in a nationwide multimedia tour. A third book, Passion Prescription,
        has been completed and is slated for release in January 2006.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        future advances and back-end profits on any books written in conjunction
        with
        Dr. Berman will become the Company&#8217;s property as part of Dr. Berman&#8217;s employment
        contract with the Company. A variety of other books are planned, with each
        book
        targeting a different facet of female health and relationships. In addition
        to
        being a profit center, the Company believes that publishing will keep Dr.
        Berman
        and the Company&#8217;s name connected to its patients in an intimate way and will
        serve as a substantial marketing vehicle in addition to enhancing the clinic&#8217;s
        medical reputation.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Newspaper
        and Magazine Columns </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Berman currently publishes columns in the Chicago Sun-Times, USA Today and
        Ladies Home Journal. The columns provide consistent, highly credible and
        free
        branding across its targeted consumer base. Dr. Berman&#8217;s weekly Chicago
        Sun-Times column, &#8220;The Language of Love,&#8221; takes an entertaining, light-hearted
        approach to relationships and sex. The 500-word column is meant to be
        insightful, but accessible for the Monday-morning commuter to read. The column
        is also featured online at www.suntimes.com, with an archive of columns from
        the
        previous six weeks. A monthly Ladies Home Journal column presents Dr. Berman&#8217;s
        answers to real women&#8217;s questions. The advice format delivers useful information
        that every woman can relate to for herself or her relationship. USA Today
        is the
        nation&#8217;s largest circulated newspaper. Dr. Berman contributes to the
        publication&#8217;s opinion page, &#8220;The Forum,&#8221; with cutting-edge, new-thinking opinion
        pieces that engage Dr. Berman in timely discussions of sexual health
        controversies. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Reality
        Shows </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Berman recently finished taping the pilot episode for A More Perfect Union,
        a
        show designed to help couples have a better relationship and sex life. The
        show
        follows three couples through an intensive week of relationship therapy designed
        to enhance their intimacy, connection and communication. Cameras capture
        the
        couples in sessions with Dr. Berman at the clinic, on therapeutic dates around
        the city of Chicago and at home completing intimate &#8220;homework&#8221; assignments each
        night. The audience watches couples go from conflict to resolution and increased
        intimacy, for a reality show that is truly uplifting. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
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          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        reality television show is being supported by a high caliber team of
        professionals, including the critically acclaimed Gantz Brothers&#8212;directors and
        producers of HBO&#8217;s Taxicab Confessions. The Emmy award-winning Gantz Brothers
        are well known for capturing provocative and highly entertaining real-life
        situations through their discrete, hidden cameras. The show is expected to
        air
        in the fourth quarter of 2005 and will provide substantial visibility to
        the
        Company and Dr. Berman.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Radio
        </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Berman hosts a weekly syndicated radio show that currently airs across the
        United States. Through a call-in format, The Dr. Laura Berman Show explores
        women&#8217;s sexual health and relationship issues, with caller-selected topics. The
        two-hour show features Dr. Berman speaking one-on-one with women about topical
        concerns and questions, as well as celebrity guest experts who specialize
        in the
        field. Dr. Berman&#8217;s radio show began in the third quarter of 2004 in Chicago,
        the nation&#8217;s third largest market on WCKG-FM. The show has since expanded to 7
        markets including the largest satellite radio network. The show is currently
        produced and distributed by Matrix Media in Chicago, Illinois, which also
        houses
        the recording studio. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Internet
        Initiatives </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company sees an opportunity to create and grow an online dating business
        built
        around Dr. Berman and her intellectual property. The site would be designed
        to
        be of special interest to women looking for more than the usual unsatisfying
        online dating experience. The Company plans to design and implement the Berman
        dating site in cooperation with an existing online dating partner so that
        the
        Company will not have to recreate the technological foundation for the business.
        The site will provide a self-help environment to improve self image and
        confidence of its members, featuring books and articles written by Dr. Berman
        designed to improve quality of life. Online diagnosis templates and treatment
        suggestions for problems such as depression, anxiety, and other common
        conditions that prevent people from being successful in their romantic lives.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">From
        dating coaching to medical and mental health referrals, the Company&#8217;s dating
        site will be a source of information and networking to form new relationships
        and to build self-confidence. Online group discussions will create a community
        support group for members and contribute to social interaction on the site.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Psychological
        profiling created by Dr. Berman will be used as the &#8220;secret formula&#8221; for making
        the successful match at the Company&#8217;s site. Profiles will be used to find
        compatible dating partners and to weed out undesirable candidates. The site
        will
        communicate the message that Dr. Berman has clinical experience with thousands
        of women and knows what they want romantically. That knowledge will be
        incorporated into the selection process to assure the best possible match.
        Products and books by Dr. Berman will be available online and members will
        receive a continuous stream of new information in their particular areas
        of
        interest or concern. The self-help component will be targeted at both men
        and
        women and will focus on mental health, relationships, and sexuality.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Online
        dating is a growing segment of the e-commerce market and has relatively low
        barriers to entry. Online dating websites often struggle with generating
        enough
        paying women users. Dr. Berman&#8217;s online dating site will attempt to remedy that
        problem through trusted name-recognition among women and with an emphasis
        on
        relationships, instead of casual dating. Attracting a large female base will
        help drive male participation. The Company&#8217;s dating site will also be a venue
        for sales of related products in addition to Dr. Berman&#8217;s intellectual property.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company currently operates its website at www.bermancenter.com, and provide
        the
        content for the website of the Network for Excellence in Women&#8217;s Sexual Health
        (&#8220;NEWSHE&#8221;) at www.newshe.com. Dr. Berman is the director of NEWSHE, which is
        owned by Dr. Berman and several other colleagues. It is anticipated that
        the
        Company will purchase the site in the near future. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Instructional
        DVDs </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company intends to produce a new series of DVDs hosted by Dr. Berman. The
        Endless Passion Series will help women and couples deal with issues of intimacy
        and sexuality throughout their lifetime. From cutting-edge medical and
        therapeutic advice to usable tips for the bedroom, viewers will receive
        life-changing information in an easy-to-use format. Hallmarks of the series
        will
        include:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Situations,
                  featuring real women and couples sharing important
                  issues;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Storylines
                  men and women can identify with, presented at an exciting
                  pace;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Usable,
                  practical advice from Dr. Berman;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 54pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Medical
                  and anatomical information displayed using state-of-the-art technology
                  and
                  graphics.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Key
        Business Relationships </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Key
        partners involved in the Company and Dr. Berman&#8217;s media career include her book
        agency International Creative Management (ICM), her talent agency, United
        Talent
        Agency (UTA) and her public relations firm, Caffeine Communications. In
        addition, Northwestern Memorial Hospital and Meeting Achievements produces
        the
        Company&#8217;s continuing medical education courses.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Corporate
        Relationships </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Corporate
        interests fund the Company&#8217;s research studies, underwrite publishing projects
        and pay for satellite media tours to announce research, thereby getting the
        Company&#8217;s name in the press. The Company has turned corporate funded research
        into books and other publications, enhancing the Company&#8217;s reputation as a
        thought leader in menopause management and female sexual medicine. The Company&#8217;s
        corporate partners seek to advertise across the Dr. Laura Berman media platform
        to tap into her loyal, robust clientele and fan-base to sell their products
        and
        services. The omnimedia concept is successfully integrated into the Company&#8217;s
        advertising sales channels and business model. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Berman has relationships with several major drug company and a variety of
        consumer product companies, including Bayer, Johnson &amp; Johnson, Vivus,
        Quality Life Pharmaceutical, Pharmacia, Next Med, Eli Lily, Pfizer, Dechuttes
        Medical, Nastech, Inspire Pharmaceutical, Proctor &amp; Gamble, C.B. Fleet,
        Summer&#8217;s Eve, Drugstore.com, and Seasonale.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Clinic Process</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
        many years in full-time academic medicine and research, Dr. Berman had a
        range
        of unique opportunities to explore and develop a multi-disciplinary plan
        for
        treating sexual dysfunction in women. The Company&#8217;s clinical model is a
        culmination of the past five years of Dr. Berman&#8217;s work and is an expression of
        what she has learned is the ideal method of treating female sexual dysfunction.
        An extensive initial work-up of each new patient delivers a complete diagnosis
        from up to five different clinicians utilizing trusted therapeutic techniques
        and the latest medical devices. A beautiful, spa-like environment is designed
        to
        be comfortable and inviting.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        each
        patient visiting the clinic, the experience is far removed from the typical
        doctor&#8217;s visit. Upon entering the clinic, the patient is directed to the waiting
        room or the Resource Library, whichever she prefers, as she completes her
        questionnaires, which are sent home to each patient prior to her visit. The
        questionnaires cover demographics, but are also part of the assessment for
        psychological factors impacting on sexual function; a depression inventory,
        a
        general stress scale, a sexual function scale, a relationship satisfaction
        scale, a body-image scale, and a genital self-image scale. The therapist
        is able
        to review the questionnaires before interviewing the patient. This way she
        can
        be aware of any important red flags that may need to be attended to during
        the
        evaluation. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Psychosexual
        Evaluation</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Every
        new
        patient who comes to the clinic undergoes a Psychosexual Evaluation with
        a
        trained sex therapist. Upon reviewing the patient&#8217;s questionnaires, the
        therapist meets with the patient to get a sense of the scope and duration
        of the
        problems the patient has been having, how symptoms started, how she is managing
        individually and how her relationships have been impacted. A sex history
        is
        taken including the patient&#8217;s sexual development, sexual message received while
        growing up and history of abuse or trauma. The evaluation helps to engage
        the
        patient in the process, by reviewing the goals of the treatment, what is
        entailed in the medical evaluation and testing, and plans for moving forward.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Whenever
        possible, women are encouraged to bring their partners to the initial
        evaluation. The couples section of the history is intended to get a sense
        of the
        couple&#8217;s dynamics and the impact of the sexual issues on the relationship.
        Another goal of the couples&#8217; piece is to educate the partner about the patient&#8217;s
        symptoms, and validate the impact the sexual dysfunction is having on him
        and
        the relationship. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">When
        the
        evaluation is finished, the therapist has gained a sense of what the goals
        of
        psychosexual treatment should be (individual therapy, couples therapy, group
        therapy, supportive therapy or some combination thereof) and reviews them
        with
        the patient. While the patient is preparing for the next step of her evaluation,
        the medical exam, the therapist confers with the medical professional and
        patient concierge about the salient psychosexual issues and what her treatment
        goals are for the patient and her partner.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Medical
        Evaluation</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Every
        new
        patient receives a medical evaluation to rule out physiological causes for
        her
        sexual function complaints. After the psychosexual history, patients meet
        with
        the medical practitioner for a medical and surgical history, which considers
        past surgeries, pelvic injuries, medical conditions, and medications which
        may
        be negatively impacting on her sexual function. A simple physical is performed
        including heart, lungs, ENT, breast exam, thyroid, and a brief genital exam
        to
        check for vulovaginal health, prolapse and evaluate Kegel muscle strength.
        Blood
        pressure is taken and the patient&#8217;s blood is drawn for a homopanal panel, which
        measures thyroid function, free and total Testosterone, and lipids, SHBG,
        ALT
        (liver function), which are the primary hormonal components of sexual function
        in women. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        female sexual dysfunction patients, there are two additional testing instruments
        designed to assess the physical sexual response. Women who come to the clinic
        for menopause management do not undergo these exams. The first is a blood
        flow
        measurement, using a Duplex Doppler Ultrasound (or laser sonogram), to measure
        blood flow to the genitals and surrounding tissue. The findings enable the
        medical practitioner to identify any occlusions that may be blocking the
        blood
        flow to the genital area and to determine if overall blood flow is adequate
        for
        baseline sexual function. The second test determines sensory thresholds to
        identify any nerve sensory impairment in the genital area, with a specialized
        device designed for this purpose. The medical practitioner is able to
        immediately review the results with the patient. While the patient is changing,
        the medical practitioner briefs the patient concierge on her findings and
        recommendations, with the exception of hormone recommendations which await
        test
        results.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Menopause
        management patients are administered a second measure of hormone levels,
        known
        as a saliva test. While most physicians routinely perform blood tests only,
        many
        experts agree that saliva testing may be more precise, since it offers a
        measure
        of bioavailable hormone levels, or the hormones that are not bound up in
        a
        woman&#8217;s cells and therefore available for her body to use. Sexual function, in
        particular, depends on this. Patients are sent home with a saliva-test kit,
        which they are instructed to complete during the appropriate time in their
        cycle. The results are used in conjunction with blood test results to determine
        the best bio-identical hormone regimen, customized to the patient&#8217;s individual
        needs. Women complete a second at-home saliva test six to eight weeks after
        beginning their prescribed hormone regimen to reassess levels. A follow-up
        visit
        with the nurse practitioner, either at the Center or over the phone, checks
        in
        with the patient about hormone levels and any other symptom changes, modifying
        the prescription if necessary. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Once
        she
        is finished, the patient meets with the patient concierge who discusses the
        current prescribed treatment plan. Treatment plans typically include ongoing
        individual, couples or group therapy as well as medical intervention, including
        medications, yoga and physical therapy. The patient concierge also provides
        tailored educational and sexual device/lubricant recommendations, depending
        on
        the woman&#8217;s needs. Necessary referrals are made for ongoing gynecological care,
        gynecological surgery, urologic ongoing care, and male sexual function
        evaluations. The patient is given the opportunity to have all of her questions
        answered and leaves with an individualized plan for addressing her sexual
        concerns. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Treatments</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Medical
        Treatment</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Medications:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Depending
        on the diagnosis, medications that may be used to treat women include
        bio-identical hormones, vasodilators (like Viagra and others which enhance
        blood
        flow and therefore lubrication and sensation in women), SSRI&#8217;s or SNRI&#8217;s,
        sensation enhancing creams and gels, and lubricants.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fitness:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Assessment
        and exercises for pelvic floor strength, as well as relaxation and stress
        management techniques. The Company&#8217;s fitness expert will lead a series of
        classes focused on relaxation and flexibility, weight training for muscle
        maintenance, and exercises for pelvic floor restoration and
        strengthening.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Nutrition:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Review
        of
        overall exercise regimen and brief food diary, tailored, gradual diet
        recommendations that hit key health points.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Psychological
        Treatment</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        it is
        determined during the evaluation that the patient is suffering from an emotional
        issue (e.g. depression, anxiety, phobias) or has a history of sexual, emotional
        or physical abuse or trauma, she will undergo individual therapy on an ongoing
        basis with a trained psychotherapist. This may include general individual
        therapy, sex therapy or some combination of the two. General therapy is used
        when the patient is struggling with depression or anxiety or when a past
        history
        or trauma issue outside the relationship needs to be addressed. Sex therapy
        is
        used in combination with general therapy in cases of sexual abuse or trauma,
        and
        alone in cases of women who need education, guidance, or resolution of
        inhibitions that negatively impact on their sexual function. Sex therapy
        is all
        talk therapy, but behavioral in nature in that the emotional resistance to
        sexual activity is addressed and the patient is given homework assignments
        specific to her sexual complaints and psychological issues. The duration
        of
        therapy can range from several months to several years, depending on the
        nature
        of the issues being treated. Individual therapy will often be combined with
        couples therapy.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Couples
        Therapy</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        it is
        determined during the evaluation that there are some couples issues contributing
        to the sexual function complaint (e.g. hostility, lack of communication,
        even an
        emotional rift as a result of struggling with medically induced sexual
        problems), the patient will undergo couples therapy with her partner. This
        may
        include general couples therapy, couples sex therapy, or some combination
        of the
        two. General couples therapy would address communication styles, conflict
        resolution, or crisis intervention (when the couple is about to separate
        or is
        going through a crisis like an affair or serious illness). Couples sex therapy
        is typically combined with general couples therapy and consists of talk therapy
        where education and guidance are provided. Resistances to sexual activity
        are
        addressed and homework is given to the couple to enhance sexual receptivity,
        openness, communication and response. The duration of therapy can range from
        several months to several years, depending on the nature of the issues being
        treated. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Group
        Therapies and Programs</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Group
        therapies are very effective treatment and allow for billing up to twelve
        patients while utilizing just one therapist. In addition to four private
        talk
        therapy rooms, the clinic has two large group therapy rooms, a yoga room
        and a
        conference room, all of which can accommodate large patient groups in therapy.
        Directing treatment towards a group therapy model will help drive profit
        and
        build a sense of community with the Company&#8217;s patients. Studies on the
        effectiveness of group therapy have demonstrated a positive effect on women&#8217;s
        ability to cope with a medical condition, knowledge about that condition,
        stress
        levels associated with that condition, family functioning, quality of life,
        emotional growth, and even longevity. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Research
        and Clinical Trials </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s clinic strives to be a research center and think-tank for advancing
        the science of female sexuality and sexual dysfunction. Dr. Berman was one
        of
        the lead principle investigators in the first multi-center clinical trial,
        which
        found Viagra to be effective in women with arousal disorder. She consulted
        with
        Pfizer to design the protocol, and also spearheaded the team to train the
        sex
        therapists to carry out the eligibility screening at over twenty different
        sites. The findings of the study, published in the Journal of Sex and Marital
        Therapy, reported a statistically significant improvement in arousal,
        lubrication, sexual satisfaction and ease and facility for reaching orgasm
        with
        Viagra as compared to placebo. Ongoing clinical and scientific research projects
        continue to be carried out at the clinic many of which will be sponsored
        by
        different companies, with whom Dr. Berman consults or has relationships.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company generates revenue and brand equity by conducting selective research
        studies. The Company believes that studies add credence to Dr. Berman&#8217;s
        professional reputation within the medical community and generate substantial
        media exposure. Interesting findings from the studies are tapped for television
        and radio appearances, as well as assorted newspaper and magazine features,
        with
        credit to Dr. Berman and/or the Company. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">It
        should
        be noted that all research is done based on real science and driven by patient
        needs. The commercial aspect of the financing and promotion of the research
        is
        not allowed to compromise the integrity or accuracy of the results. All research
        carried out at the clinic (both clinical trials and general research) is
        approved by a centralized internal review board (IRB) office for the protection
        of human subjects. Use of a centralized IRB to review and approve all research
        ensures its legitimacy and provides outside supervision of adherence to ethical
        guidelines.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Continuing
        Medical Education Courses </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        September 2004, the Company hosted &#8220;Women&#8217;s Sexual Health State-of-the-Art
        Series&#8221; through Northwestern Memorial Hospital&#8217;s Continuing Medical Education
        Office. This meeting was targeted to a national group of health care
        professionals (nurses, therapists, physicians, etc) who were interested in,
        or
        currently treating female sexual function complaints. The course emphasized
        cutting-edge information on the evaluation, diagnosis, and treatment of female
        sexual function complaints, including pelvic pain, perimenopause and menopause,
        sexual challenges of special populations of women, and couples issues. The
        two
        day multi-disciplinary course will be held annually in Chicago, with the
        next
        scheduled for September 17-18, 2005. The Company has expanded the series
        to
        include meetings in Los Angeles in April of 2006 and in New York City in
        June of
        2006. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company benefits greatly from its role as host of this educational series
        on
        many levels. First, it heightens exposure of the clinic among other
        professionals in the field. Secondly, it promotes the professional reputation
        of
        the clinic in the Northwestern Memorial community and well beyond by acting
        as a
        voice of authority in the science and cutting-edge research of female sexual
        dysfunction. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        the
        Company&#8217;s representatives, the Company believes the clinical staff will continue
        to grow its professional reputation by attending all major meetings in the
        field
        to present the Company&#8217;s research and network with other professionals. These
        include the American Association of Sex Educators and Therapists (AASECT),
        the
        Society for the Scientific Study of Sexuality (SSSS), the American Psychological
        Association (APA), the International Society for the Study of Women&#8217;s Sexual
        Health (ISSWSH), the American Urologic Association (AUA), and the American
        College of Obstetrics and Gynecologists (ACOG). </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Growth
        Strategies </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">With
        respect to growth inside an individual market or city, the Company plans
        to move
        beyond one large downtown center, to open satellite centers in various cities
        and suburbs. The satellite centers would be wholly owned and managed by the
        existing team. The plan is to have talk therapy and physical therapy comprise
        the bulk of the revenue at the satellites. In Illinois, the most likely first
        satellite to open would be in the Northern suburbs such as Barrington and
        the
        Western suburbs such as Naperville. Other major cities are also under
        consideration for the first satellite locations such as New York and San
        Francisco. International locations in Europe and Asia will be considered
        for
        years three and four of the roll-out strategy. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Competition
        </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Illinois</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.
        Loyola
        University Sexual Dysfunction Center, Chicago, IL</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        program is organized under the direction of Loyola&#8217;s Department of Psychiatry
        and Behavioral Neurosciences and is directed by Dr. Domeena Renshaw, a sex
        therapist. Married couples and individuals with sexual problems are provided
        seven weeks of counseling, while single patients may receive individual therapy
        or instead attend a 6-week all female or all male counseling group. Patients
        are
        typically seen by a group of trainees who are under supervision by Dr. Renshaw
        and her staff. The short term therapy model does not allow for treating couples
        or individuals with significant emotional or relationship issues. There is
        no
        medical evaluation or ongoing treatment for sexual problems. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.
        The
        Family Institute, Northwestern University, Evanston, IL</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Midwest&#8217;s largest center devoted to couples and family therapy, the professional
        staff is comprised of 30 therapists plus support staff. Thirteen of those
        therapists specialize in couples therapy, one, Bill Pinsoff, the president
        of
        the Institute, has a specialty in sex therapy. The rest of the staff specializes
        in anxiety disorders, family relationships, adolescents, eating disorders,
        etc.
        The center reports that they see more than 2,400 families, couples or
        individuals each year. While this program is well established and offers
        comprehensive psychological services, they only report one therapist who
        has a
        clinical interest in sex therapy and they offer no medical evaluation or
        treatment for sexual function complaints</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.
        Other
        Sex Therapists in the Chicago area (sex therapy only)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Richard
        Carroll, PhD, Northwestern Memorial Hospital, Department of
        Psychiatry</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shirley
        Barron, PhD, University of Chicago Hospital, Department of
        Psychiatry</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Karen
        Donhey, PhD, private practice, Chicago</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Other
        States</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.
        The
        Sexual Medicine Program, Department of Urology, Well Medical College of Cornell
        University, New York Presbyterian Hospital, New York, NY</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        program is headed by Dr. John Mulhall, an urologist. The program has been
        primarily focused on male sexual dysfunction, since that is Dr. Mulhall&#8217;s area
        of expertise. He also runs the Sexual Medicine Research Laboratory, which
        carries out basic science research, primarily focused in male sexual
        dysfunction. Beyond two support staff (including a clinical trial coordinator
        and a practice manager), Dr. Michael Perelman is the sex therapist affiliated
        with the Sexual Medicine Program. He is the Co-Director of the Human Sexuality
        Program, Payne Whitney Clinic of the New York Presbyterian Hospital. Dr.
        Perelman does offer ongoing therapy as part of a training program for psychiatry
        residents at the hospital. Medical testing and treatment of women primarily
        consists of hormonal testing and management.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.
        New
        York Institute of Human Sexuality, Columbia University, Department of Urology,
        New York, NY</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        institute includes two Centers: the New York Center for Men's Sexual Health
        and
        the New York Center for Women's Sexual Health. The Women&#8217;s Sexual Health program
        is run by Dr. Ridwan Shapsigh, a male urologist and Dr. Hilda Hutcherson,
        a
        female OBGYN. They consult with a team of sex therapists to whom they refer
        patients. While there is no sex therapist on staff, they do employ a director
        of
        research, nurse, clinical research coordinator and medical assistant. The
        primary ongoing medical evaluation and treatment they do is hormonal
        management.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.
        Department of Psychiatry and Behavioral Sciences Reproductive and Sexual
        Medicine Clinic, University of Washington School of Medicine, Seattle,
        WA</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        program is run by Dr. Julia Heiman, a sex therapist, and a team of trainees.
        She
        refers patients to outside medical experts when needed. The clinic is mostly
        focused on training researchers and therapists in treating different kinds
        of
        individual and couples sexual challenges. They are not targeted specifically
        at
        women, and see both male and female patients. While they collaborate with
        other
        medical departments, the program does not provide ongoing medical evaluation
        or
        treatment.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.
        Center
        for Sexual and Marital Health, Robert Wood Johnson University Medical Group,
        Piscataway, NJ</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        program is run by Dr. Sandra Leiblum, a sex therapist. She provides ongoing
        couples and individual treatment for men and women. Patients may be seen
        in a
        variety of treatment formats, including individual, couple, and group sessions.
        Workshop programs are offered at times to enhance and extend individual therapy.
        Referrals are made to medical professionals for medical evaluation and treatment
        when deemed necessary. This program is primarily focused on training for
        therapists and researchers.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.
        Masters and Johnson Institute, St. Louis, MO</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        program was started in the 1950&#8217;s and is presently directed by Dr. Mark
        Schwartz, a sex therapist. He and four other therapists focus their treatment
        on
        couples counseling, eating disorders, sexual compulsion and recovering from
        sexual trauma. They provide no medical evaluation or ongoing medical
        treatment.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.
        Program in Human Sexuality, Department of Family Practice and Community Health,
        University of Minnesota Medical School, Minneapolis, MN</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        program, directed by Dr. Eli Coleman, sex therapist, is run by a team sex
        therapy supervisors and trainees under his supervision. The program is focused
        on post-doctoral training and provides ongoing sex therapy for a range of
        male
        and female disorders from cross-dressing to HIV. No ongoing medical evaluation
        or care is provided.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.
        Kinsey
        Institute Sexual Health Clinic, Indiana University Health Center, Bloomington,
        IN</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        program is run by Dr. John Bancroft, a sex therapist. The institute provides
        sex
        therapy to individuals and couples. Some medical evaluation and treatment
        is
        carried out on male patients with erectile dysfunction, but none is available
        for female patients. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.
        Connecticut Surgical Group, Hartford, CT</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        program is run by nurse practitioner, Jill Siskind. The only other employee
        is a
        female ultrasound technician. Ms. Siskind also refers to a consulting sex
        therapist when needed. The program is folded into a general Urology Clinic
        with
        no dedicated space, so all other patients at the center are male with general
        urologic conditions. Ms. Siskind does offer medical/psychological evaluations
        for women with sexual problems and some ongoing medical treatment.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9.
        Institute for Sexual Medicine, Boston Medical Center, Boston, MA</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Perhaps
        the largest facility in the field today, the Institute for Sexual Medicine
        is a
        combination research and treatment facility. A five million dollar grant
        from
        Bayer Corporation to fund basic science primarily in the realm of erectile
        dysfunction helped to create the laboratory for sexual medicine research
        at the
        Institute. Located within the Boston Medical Center, the institute is currently
        staffed with thirteen employees including two doctors, one sex therapist,
        one
        nurse, one ultrasound tech, two secretaries and one center coordinator; the
        lab
        is staffed with one director, one assistant director, two technicians and
        one
        administrator. The Institute is run by Dr. Irwin Goldstein, a former colleague
        of Dr. Berman&#8217;s. Dr. Berman founded the Women&#8217;s Sexual Health Clinic at Boston
        Medical Center, in 1998, which was folded into the Institute after her
        departure. While the Institute has had its successes, they have principally
        been
        in the realm of male sexual dysfunction. The program is designed to service
        male
        sexual problems primarily. The entire medical staff, including the sex therapist
        and the nurse, are men. The center has treated about 1,350 women since 1998
        versus 14,000 men.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Legal
        Environment </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Because
        of its involvement in Medicare and Medicaid, the Federal Government regulates
        much of the medical field. The Company&#8217;s physicians do not accept Medicare and
        Medicaid and should therefore not fall within the Medicare/Medicade Fraud
        Act or
        its penalties. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Physicians
        are required under a series of laws, called the Stark Laws, to function in
        a
        regulated fashion regarding referrals. The physicians practice inside the
        clinic
        but conduct their own practice for all legal purposes. Legally segmenting
        these
        two portions of the business allows the remainder of the practitioners to
        function outside of the purview of these restrictions. Masters of social
        work
        and masters of marital and family therapy are not restricted under either
        the
        Stark Laws or the Medicare and Medicaid rules in the context of their practice
        at the clinic. </font></div>
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        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
        the Company is structured as a corporation, physicians practice inside separate
        companies known as professional corporations (PC&#8217;s). The PC&#8217;s have management
        agreements with the Company and rental or lease agreements regarding the
        space
        they occupy. The PC&#8217;s themselves are owned by the various physicians who
        practice at the clinic. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Technology
        </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Technology
        plays a significant role in the operations and finances of the business.
        The
        Company has created a significant internet presence, including a website
        complete with on-line scheduling capabilities, credit card payment abilities
        and
        important health information for women. A patient is able to log onto the
        Company&#8217;s website (www.bermancenter.com) and schedule her appointment
        on-the-spot. The Company believes it is important for a patient to be able
        to
        schedule in privacy and not have to speak to anyone if she chooses. At the
        moment, only initial assessments and Bio Identical HT appointments can be
        scheduled on-line. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        clinic is equipped with a practice-management software package that has full
        capabilities for patient scheduling, patient registration and physician
        documentation, along with statistical data for clinical research. Other
        technology features include on-line scheduling via the Company&#8217;s website, a
        complete network and audio and visual components for training and therapeutic
        sessions. Scanning of doctors&#8217; written notes incorporates the notes into the
        electronic files.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Access
        to
        computers is a key component of the clinic. Every group room and the yoga
        room
        is equipped with a drop-down screen connected to the Company&#8217;s computer network
        so that presentations and videos can be shown as part of the group sessions
        or
        for other kinds of presentations. Each exam and treatment room has a computer
        in
        it, networked to the Company&#8217;s system, so that specialists can have easy access
        to patient files, notes and scheduling. A computer is also housed in the
        Wellness Resource Library so that patients can have access to the internet
        and
        utilize the computer for research purposes. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">While
        the
        group rooms and yoga room all have their own stereo systems, the common areas
        and hallways are equipped with speakers so that soothing music can be heard
        throughout the center from a central stereo, enhancing the spa-like
        atmosphere.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Berman already has several online venues for content including www.NEWSHE.com,
        Discovery Health Channel website at www.discovery.com/health, The Oprah Winfrey
        Show web site www.oprah.com, www.suntimes.com, www.abcnews/gma.com,
        www.lifetimetv.com and www.drugstore.com. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Intellectual
        Property </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Berman&#8217;s current and past media projects including books, television, and radio
        are all owned by the Company through a multi year employment agreement with
        Dr.
        Berman. Under the employment agreement, Dr. Berman has agreed to contribute
        the
        proceeds from all intellectual property to the Company (other than proceeds
        derived from honorarium fees and speaking engagements).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Berman
        Center Intimate Accessories Line products manufactured by California Exotics
        have not been patented nor are they patentable in management&#8217;s opinion.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Employees
        and Labor Relations</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        March
        31, 2005 the Company had 7 full-time employees and two part-time
        employees.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Legislative
        Actions and Potential New Accounting Pronouncements</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -0.35pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        order
        to comply with the newly adopted Sarbanes-Oxley Act of 2002 and proposed
        accounting changes by the Securities and Exchange Commission, the Company
        may be
        required to increase its internal controls, hire additional personnel and
        additional outside legal, accounting and advisory services, all of which
        could
        cause the Company&#8217;s general and administrative costs to increase. Proposed
        changes in the accounting rules, including legislative and other proposals
        to
        account for employee stock options as compensation expense among others,
        could
        increase the expenses that the Company report under Generally Accepted
        Accounting Practices and could adversely affect its operating
        results.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Property</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s executive offices are located at 211 East Ontario, Suite 800, Chicago,
        Illinois 60611. Base rent is $23 per square foot in year one or $172,500
        in the
        first year. The rent escalates at 3% per year, except in year 3 when the
        extra
        square footage becomes chargeable. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
        of
        the Company&#8217;s facilities are in good repair. The Company believes that its
        existing facilities will be adequate to meet its needs for the foreseeable
        future. Should the Company need additional space, the Company believes it
        will
        be able to secure additional space at commercially reasonable
        rates.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Dividend
        Policy </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company, to its knowledge, has never paid cash dividends on its common stock.
        The Company intends to keep future earnings if any, to finance the expansion
        of
        its business. The Company does not anticipate that any cash dividends will
        be
        paid in the foreseeable future. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Legal
        Proceedings</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Neither
        the Company, its subsidiary nor any of their respective properties are a
        party
        to any pending legal proceeding.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RISK
        FACTORS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
        investment in the Company&#8217;s common stock involves a high degree of risk. You
        should carefully consider the risks described below and all of the information
        contained in this Current Report on Form 8-K before deciding whether to purchase
        the Company&#8217;s common stock. The Company&#8217;s business, financial condition or
        results of operations could be materially adversely affected by these risks
        if
        any of them actually occur. The trading price of the Company&#8217;s common stock
        could decline due to any of these risks, and you may lose all or part of
        your
        investment. Some of these factors have affected the Company&#8217;s financial
        condition and operating results in the past or are currently affecting the
        Company. This Current Report on Form 8-K also contains forward-looking
        statements that involve risks and uncertainties. The Company&#8217;s actual results
        could differ materially from those anticipated in these forward-looking
        statements as a result of certain factors, including the risks faced by the
        Company described below and elsewhere in this Current Report on Form
        8-K.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company has a history of losses and the Company anticipates that its expenses
        will dramatically increase as the Company execute its business plan. Thus,
        the
        Company will likely experience continued losses in the near future, may not
        be
        able to continue as a going concern, and may not ever achieve or maintain
        profitability. </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Berman
        Health and Media, Inc. has incurred significant losses since its inception
        in
        January 2003. In addition, the Company anticipates that its expenses will
        dramatically increase as the Company prepare to leverage its media platform
        to
        exploit opportunities in the female sexual medicine industry. If its revenues
        grow more slowly than anticipated or if its operating expenses exceed
        expectations, the Company will continue to operate at a loss, may not be
        able to
        continue as a going concern and may not be able to achieve or consistently
        maintain profitability.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, the Company&#8217;s independent registered public accounting firm has added
        an explanatory paragraph to their audit opinion issued in connection with
        the
        financial statements for the year ended December 31, 2004 relative to the
        Company&#8217;s ability to continue as a going concern. The Company&#8217;s ability to
        obtain additional funding in year 2005 and thereafter will determine its
        ability
        to continue as a going concern. The Company&#8217;s financial statements do not
        include any adjustments that might result from the outcome of this uncertainty.
        The Company&#8217;s financial statements and related notes are not attached to this
        Current Report on Form 8-K but will be filed by an amendment to this Current
        Report no more than 71 days from the date that this Current Report is required
        to be filed.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company&#8217;s historical financial information does not reflect its current primary
        business strategy for achieving revenue growth.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Historically,
        Berman Health and Media, Inc. has derived the substantial majority of its
        revenues from clinic patients. The Company anticipates that media and product
        revenue from licensing its products and services that the Company plan to
        develop will constitute an increasing portion of its revenues. Accordingly,
        historical financial information should not be construed as the basis from
        which
        to judge the Company&#8217;s future operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company is dependent upon one person, Dr. Laura Berman, for achieving revenue
        growth. The loss of services of Dr. Berman would result in significant financial
        loss for the Company.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company is uniquely dependent on one individual, Dr. Laura Berman, for its
        reputation and branding. Dr. Berman&#8217;s talents, efforts, personality and
        leadership have been, and continue to be critical to the Company&#8217;s success. The
        diminution or loss of services of Dr. Berman, and any negative market or
        industry perception arising from that diminution or loss, could have a material
        adverse effect on the Company&#8217;s business and the various business lines
        functioning at the Company. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company has an exclusive, royalty-free license from Dr. Berman with respect
        to
        her name, likeness, image and voice for use in its business. If the Company
        was
        to terminate Dr. Berman&#8217;s employment without cause or if Dr. Berman were to
        terminate her employment for good reason, the license would cease to be
        exclusive. In addition, under this circumstance, Dr. Berman could compete
        against the Company and the Company would have to pay Dr. Berman royalties
        on
        revenues relating to her name. If Dr. Berman were to compete with the Company
        or
        if the Company was to lose its right to use this intellectual property, its
        business would be materially adversely affected.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, the Company&#8217;s business would be adversely affected if Dr. Berman&#8217;s
        public image or reputation were tarnished. Dr. Berman, as well as her name,
        her
        image and the intellectual property rights relating to these, are integral
        to
        the Company&#8217;s marketing efforts and form a significant portion of its brand
        name. The Company&#8217;s success and the value of its brand depend in large part on
        the reputation of Dr. Berman.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        market for female sexual health products and services is at an early stage
        and
        if market demand does not develop, the Company may not achieve or sustain
        revenue growth.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        market for </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        Company&#8217;s</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        products
        and services is at an early stage. If the Company and its licensees are unable
        to develop demand for its products and services, the Company may not achieve
        or
        sustain revenue growth. The Company cannot accurately predict the growth
        of the
        markets for these products and services, the timing of product and service
        introductions or the timing of acceptance of them.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Even
        if
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        Company&#8217;s</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        and its
        licensees&#8217; products and services are ultimately adopted, widespread adoption may
        take a long time to occur. The timing and amount of royalties and product
        sales
        that the Company receives will depend on whether the products and services
        marketed achieve widespread adoption, and, if so, how rapidly that adoption
        occurs. The Company expects to pursue extensive and expensive marketing and
        sales efforts to educate prospective institutional customers about the uses
        and
        benefits of the Company&#8217;s products and services. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        these
        institutions are unwilling to budget for such products and services or reduce
        their budgets as a result of an economic slowdown, cost-containment pressures
        or
        other factors, the Company may not be able to achieve widespread adoption
        of its
        products and services at a satisfactory rate. If the Company is unable to
        increase sales of its products and services, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        Company&#8217;s </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">business,
        financial condition and results of operations may be adversely
        affected.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>If
        the Company fails to protect and enforce its intellectual property rights
        or if
        licensors who license intellectual property rights to the Company fails to
        protect and enforce such licensors&#8217; intellectual property rights, the Company&#8217;s
        ability to license its technologies and to generate revenues would be
        impaired.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s business depends in part on generating revenues by licensing its
        intellectual property and by selling products and services that incorporate
        its
        specialty. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company might be unable to recruit or retain necessary personnel, which could
        slow the development and deployment of its products and
        services.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s future success and ability to sustain its revenue growth depend upon
        the continued service of the Company&#8217;s executive officers, and other key
        personnel and upon hiring additional key personnel and staff for the clinic.
        Competition for these individuals is intense and the Company may not be able
        to
        attract, assimilate or retain additional highly qualified personnel in the
        future. The loss of services of the Company&#8217;s executive officers and other key
        personnel and the failure to successfully attract, assimilate or retain
        sufficiently qualified personnel could harm the business and its ability
        to
        achieve or maintain profitability. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company projects rapid growth and change in its business and the Company&#8217;s
        failure to successfully manage this change could harm its
        business.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
        future periods of rapid growth may place significant strains on the Company&#8217;s
        managerial, financial and other resources. The rate of any future expansion,
        in
        combination with the Company&#8217;s diverse products and services, may demand an
        unusually high level of managerial effectiveness in anticipating, planning,
        coordinating and meeting the Company&#8217;s operational needs as well as the needs of
        its licensees. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Product
        liability claims could expose the Company to losses and could be time-consuming
        and costly to defend.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Claims
        that consumer products have flaws or other defects that lead to personal
        or
        other injury are possible, in particular for the Berman Center Intimate
        Accessories Collection. Berman Health and Media, Inc. has not experienced
        any
        product liability claims to date. Although the Company seeks to limit its
        exposure to product liability claims by using certain provisions in licensing
        agreements and through the Company&#8217;s manufacturer&#8217;s, California Exotic
        Novelties, liability insurance, existing or future laws or unfavorable judicial
        decisions could limit or invalidate such provisions. If products sold by
        the
        Company or by its licensees cause personal injury, financial loss or other
        injury to the Company&#8217;s or its licensees&#8217; customers, the customers, or the
        Company&#8217;s licensees, may seek damages or other recovery from the Company. These
        claims would be time-consuming and expensive to defend, distracting to
        management and could result in substantial damages to the Company. In addition,
        the assertion of these claims, even if unsuccessful, could damage the Company&#8217;s
        reputation or that of its licensees or their products. This damage could
        limit
        the market for the Company&#8217;s products and services and harm its business,
        financial condition and results of operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company may become involved in costly and time consuming litigation over
        malpractice or violation of Stark Laws.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Hormone
        therapy has demonstrated risks, as found by the recent cessation of the Women&#8217;s
        Health Initiative launched by the National Institutes of Health in the United
        States. While full information and medical disclaimers are signed by all
        patients of the Company&#8217;s clinic, there is a risk that hormone therapy will be
        perceived to have some link to other illness and would generate potential
        liability for the clinic and its practitioners.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        medical portion of the Company&#8217;s affiliated businesses is subject to the Stark
        Laws in the United States regarding revenues and referrals. There is the
        possibility that the Company will at some time be ruled in violation of the
        Stark Laws, which would have an adverse economic impact on the
        Company.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        medical portion of the business must be separated into a separate entity
        known
        as a professional corporation. We must maintain an appropriate arms-length
        relationship with various professional corporations that function around
        the
        Company (i.e., the practice). The Company is not licensed to practice medicine,
        but may be subject to review by the licensing boards in the state of Illinois.
        While the majority of clinic revenue is not derived from medical services,
        there
        is a risk that the Company&#8217;s relationships with medical professionals will be
        viewed as improperly maintained and the Company is in violation of the corporate
        medicine doctrine. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Malpractice
        insurance maintained at the professional corporation level or the clinician
        level may not successfully cover the corporate entity and though the Company
        itself is not engaged in the practice of corporate medicine, it may be named
        in
        any potential malpractice suits, as well.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company and its officers, directors and employees have limited experience
        in
        marketing, licensing and selling the products and services offered by the
        Company&#8217;s</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>clinic,
        have no experience in the online dating industry and may not be able to operate
        the business effectively.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company and its officers, directors and employees have limited experience
        in
        marketing, licensing and selling the products and services offered by the
        Company&#8217;s clinic, in operating and managing the clinic and in developing
        products and services related to the female sexual medicine industry. In
        addition, offering and developing an online dating site is a substantial
        departure from the Company&#8217;s current business of offering product development
        and services related to the female sexual medicine industry. The Company
        and its
        officers, directors and employees have no experience in developing, producing,
        pricing, marketing, selling or distributing online dating products and services
        and the Company will rely on its ability to employ persons that have such
        experience to carry out its business strategy with respect to developing
        an
        online dating site and the other areas of its business. Because of its
        inexperience in these areas, the Company may not be effective in achieving
        success that may otherwise be attainable by more experience. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Legislative
        actions, higher insurance cost and potential new accounting pronouncements
        are
        likely to impact the Company&#8217;s future financial position and results of
        operations.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        may
        potentially be new accounting pronouncements or regulatory rulings which
        will
        have an impact on the Company&#8217;s future financial position and results of
        operations. The Sarbanes-Oxley Act of 2002 and other rule changes as well
        as
        proposed legislative initiatives following the Enron bankruptcy are likely
        to
        increase general and administrative costs. In addition, insurers are likely
        to
        increase premiums as a result of high claims rates, which the Company expects
        will increase its premiums for insurance policies. Further, proposed initiatives
        are expected to result in changes in certain accounting rules, including
        legislative and other proposals to account for employee stock options as
        a
        compensation expense. These and other potential changes could materially
        increase the expenses the Company report under generally accepted accounting
        principles, and adversely affect its operating results.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Changes
        in general economic conditions, especially interest rates and business cycles,
        may significantly affect the Company&#8217;s income and
        revenues.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
        substantial deterioration in general political or economic conditions,
        particularly in the United States, may adversely affect the Company&#8217;s financial
        performance. The terrorist attacks that took place in the United States on
        September 11, 2001, along with the U.S. military campaign against terrorism
        in
        Iraq, Afghanistan and elsewhere and continued violence in the Middle East
        have
        created many economic and political uncertainties, some of which may materially
        harm demand for the Company&#8217;s products and services and the Company&#8217;s business
        and revenues. The long-term effects of these events on the Company&#8217;s industry,
        the market for its products and the U.S. economy as a whole are uncertain.
        The
        consequences of any additional terrorist attacks, or any expanded-armed
        conflicts are unpredictable, and the Company may not be able to foresee these
        events that could have an adverse effect on its markets or
        business.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company may become involved in costly and time consuming litigation over
        misused
        or misinterpreted advice.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        portion
        of the Company&#8217;s media, from radio to television to books and columns, focuses
        on giving advice in the therapeutic and medical realms. In delivering such
        advice, there is risk it will be improperly followed or improperly blamed
        for
        damage that a listener, viewer or reader may have suffered, and consequently
        the
        Company could be subject to lawsuits on that basis. The negative publicity
        resulting from filing of any such lawsuit could adversely affect the Company&#8217;s
        marketing efforts. In addition, it is possible that the Company&#8217;s financial
        resources would be insufficient to satisfy the alleged claims in any
        lawsuit.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company may become involved in costly and time consuming litigation over
        clinical trials conducted at the Berman Center.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Clinical
        trials conducted at the Berman Center carry with them inherent risk because
        of
        the experimentation on human subjects. While independent review board (IRB)
        approvals will be achieved before any clinical trial testing is done, the
        risk
        of litigation and malpractice claims is present. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">17</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
        <div id="HDR">
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          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>If
        the Company&#8217;s television shows fail to maintain a sufficient audience and if
        adverse trends develop in the television production business generally, that
        business could become unprofitable.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s television production business generates a growing portion of its
        revenues, but is subject to a number of uncertainties. Television production
        is
        a speculative business because revenues and income derived from television
        depend primarily on the continued acceptance of that programming from the
        public, which is difficult to predict. Public acceptance of particular
        programming is dependent upon, among other things, the content and quality
        of
        that programming, the strength of stations on which that programming is
        broadcast, promotion of that programming, the quality and acceptance of
        competing television programming and other sources of entertainment and
        information. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">While
        Showtime Networks has approved the pilot for A More Perfect Union, it is
        not
        obliged to continue with the first season as a series. Showtime Networks
        is in
        the process of reviewing the pilot in order to determine if it will proceed
        with
        a 10-episode series. If Showtime Networks accepts the series, it will be
        under
        prearranged terms negotiated at the time of the pilot agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, television revenues and income may also be affected by a number
        of
        factors beyond the Company&#8217;s control. These factors include a general decline in
        broadcast television viewers, pricing pressure in the television advertising
        industry, strength of the stations on which the Company&#8217;s programming is
        broadcast, general economic conditions, availability of other forms of
        entertainment and leisure time activities and other factors. All of these
        factors may quickly change and these factors cannot be predicted with certainty.
        Accordingly, if these changes were to occur, the revenues the Company generates
        and anticipates generating from television programming could
        decline.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company is reliant upon outside production companies to produce a successful
        television product, and the Company may not be able to control the final
        output.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        nature of the entertainment business is such that the Company, to the extent
        that the Company is not in charge of production, is not necessarily in charge
        of
        the quality of the final output. Success of the entertainment product is
        contingent upon working with producers who provide quality services. The
        Company
        is reliant upon different production companies to produce a successful product;
        and those production companies may not succeed on any given project. Due
        to
        factors beyond the Company&#8217;s control, some of the media projects may not succeed
        in producing long-term revenue.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Future
        acquisitions might dilute stockholder value, divert management attention
        or
        cause integration problems.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        part
        of its business strategy, the Company might in the future acquire, businesses
        or
        intellectual property that the Company feel could complement its business,
        enhance its products and services or increase its intellectual property
        portfolio. If the Company consummate acquisitions through an exchange of
        the
        Company&#8217;s securities, its stockholders could suffer significant dilution.
        Acquisitions could create risks for the Company, including:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">unanticipated
                  costs associated with the
                  acquisitions;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">use
                  of substantial portions of the Company&#8217;s available cash to consummate the
                  acquisitions;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">diversion
                  of management&#8217;s attention from other business concerns;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">difficulties
                  in assimilation of acquired personnel or
                  operations.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
        future acquisition, even if successfully completed, might not generate any
        additional revenue or provide any benefit to the Company&#8217;s
        business.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company anticipates raising additional capital in the
        future.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company anticipates raising additional funds through public or private
        financing, strategic relationships or other arrangements in the near future
        to
        carry out its business strategy. The Company cannot be certain that any
        financing will be available on acceptable terms, or at all, and the Company&#8217;s
        failure to raise capital when needed could limit its ability to expand its
        business. Additional equity financing may be dilutive to the holders of the
        Company&#8217;s common stock, and debt financing, if available, may involve
        restrictive covenants. Moreover, strategic relationships, if necessary to
        raise
        additional funds, may require that the Company relinquish valuable
        rights.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company&#8217;s executive officers, directors and major stockholders have significant
        control over the Company, which may lead to conflicts with other stockholders
        over corporate governance matters.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s current directors, officers and more than 10% stockholders, as a
        group, own approximately 49.53% of the Company&#8217;s outstanding common stock.
        Acting together, these stockholders would be able to significantly influence
        all
        matters that the Company&#8217;s stockholders vote upon, including the election of
        directors, approvals of acquisitions and financing and other
        transactions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>If
        the Company fails to maintain effective internal controls over financial
        reporting, the price of its common stock may be adversely affected.
</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company is required to establish and maintain appropriate internal controls
        over
        financial reporting. Failure to establish those controls, or any failure
        of
        those controls once established, could adversely impact the Company&#8217;s
        disclosures regarding its business, financial condition or results of
        operations. In addition, management&#8217;s assessment of internal controls over
        financial reporting at such time may identify weaknesses and conditions that
        need to be addressed in the Company&#8217;s internal controls over financial reporting
        or other matters that may raise concerns for you. Any actual or perceived
        weaknesses and conditions that need to be addressed in the Company&#8217;s internal
        controls over financial reporting, disclosure of management's assessment
        of its
        internal controls over financial reporting or disclosure of its public
        accounting firm's attestation to or report on management's assessment of
        its
        internal controls over financial reporting may have an adverse impact on
        the
        price of the Company&#8217;s common stock. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company may not be able to achieve the benefits the Company expects to result
        from the merger.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        can
        be no assurance that any of the anticipated benefits of the recent merger
        of the
        Company and Berman Health and Media, Inc. will be realized. In addition,
        the
        attention and effort devoted to consummating and achieving the benefits of
        the
        merger could significantly divert management&#8217;s attention from other important
        issues, which could materially and adversely affect the Company&#8217;s operating
        results or stock price in the future.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Standards
        for compliance with Section 404 of the Sarbanes-Oxley Act of 2002 are uncertain,
        and if the Company fails to comply in a timely manner, its business could
        be
        harmed and its stock price could decline. </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rules
        adopted by the SEC pursuant to Section 404 of the Sarbanes-Oxley Act of 2002
        require annual assessment of a company&#8217;s internal control over financial
        reporting, and attestation of its assessment by the company&#8217;s independent
        registered public accountants. On March 2, 2005, the SEC extended the compliance
        dates for non-accelerated filers, as defined by the SEC, by one year.
        Accordingly, the Company believes that this requirement will eventually be
        applicable to the Company. The standards that must be met for management
        to
        assess the internal control over financial reporting as effective are new
        and
        complex, and require significant documentation, testing and possible remediation
        to meet the detailed standards. The Company may encounter problems or delays
        in
        completing activities necessary to make an assessment of its internal control
        over financial reporting. In addition, the attestation process by its
        independent registered public accountants is new and the Company may encounter
        problems or delays in completing the implementation of any requested
        improvements and receiving an attestation of the Company&#8217;s assessment by its
        independent registered public accountants. If the Company cannot assess its
        internal control over financial reporting as effective, or its independent
        registered public accountants are unable to provide an unqualified attestation
        report on such assessment, investor confidence and share value may be negatively
        impacted. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">19</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
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          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company has not voluntarily implemented various corporate governance measures,
        in the absence of which, stockholders may have more limited protections against
        interested director transactions, conflicts of interest and similar
        matters.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Recent
        Federal legislation, including the Sarbanes-Oxley Act of 2002, has resulted
        in
        the adoption of various corporate governance measures designed to promote
        the
        integrity of the corporate management and the securities markets. Some of
        these
        measures have been adopted in response to legal requirements. Others have
        been
        adopted by companies in response to the requirements of national securities
        exchanges, such as the NYSE or The Nasdaq Stock Market, on which their
        securities are listed. Among the corporate governance measures that are required
        under the rules of national securities exchanges and Nasdaq are those that
        address board of directors&#8217; independence, audit committee oversight, and the
        adoption of a code of ethics. The Company has not yet adopted any of these
        corporate governance measures and, since its securities are not yet listed
        on a
        national securities exchange or Nasdaq, the Company is not required to do
        so. It
        is possible that if the Company </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">was</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        to adopt
        some or all of these corporate governance measures, stockholders would benefit
        from somewhat greater assurances that internal corporate decisions were being
        made by disinterested directors and that policies had been implemented to
        define
        responsible conduct. For example, in the absence of audit, nominating and
        compensation committees comprised of at least a majority of independent
        directors, decisions concerning matters such as compensation packages to
        the
        Company&#8217;s senior officers and recommendations for director nominees may be made
        by a majority of directors who have an interest in the outcome of the matters
        being decided. Prospective investors should bear in mind the Company&#8217;s current
        lack of corporate governance measures in formulating their investment decisions.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>There
        is no assurance of an established public trading market.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
        the Company&#8217;s common stock is quoted in the Pink Sheets, a regular trading
        market for the securities may not be sustained in the future. Quotes for
        stocks
        listed on the Pink Sheets are not listed in the financial sections of newspapers
        and newspapers generally have very little coverage of stocks listed solely
        on
        the Pink Sheets. Accordingly, prices for and coverage of securities traded
        solely on the Pink Sheets may be difficult to obtain. In addition, stock
        traded
        solely on the Pink Sheets tend to have a limited number of market makers
        and a
        larger spread between the bid and ask prices than those listed on the NYSE,
        AMEX
        or NASQAQ exchanges. All of these factors may cause holders of the Company&#8217;s
        common stock to be unable to resell their securities at or near their original
        offering price or at any price. Market prices for the Company&#8217;s common stock
        will be influenced by a number of factors, including:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">changes
                  in interest rates;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">competitive
                  developments, including announcements by competitors of new products
                  or
                  services or significant contracts, acquisitions, strategic partnerships,
                  joint ventures or capital
                  commitments;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">variations
                  in quarterly operating results;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">changes
                  in financial estimates by securities
                  analysts;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  depth and liquidity of the market for the Company&#8217;s common
                  stock;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">investor
                  perceptions of the Company after the merger with Berman Health
                  and Media,
                  Inc. and the women&#8217;s sexual health industry generally;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">general
                  economic and other national
                  conditions.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Provisions
        of the Company&#8217;s certificate of incorporation and bylaws may delay or prevent a
        take-over which may not be in the best interests of the Company&#8217;s
        stockholders.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Provisions
        of the Company&#8217;s certificate of incorporation and bylaws may be deemed to have
        anti-takeover effects, and may delay, defer or prevent a takeover attempt.
        In
        addition, certain provisions of the Delaware General Corporation Law also
        may be
        deemed to have certain anti-takeover effects. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Shares
        eligible for future sale may adversely affect the market price of the Company&#8217;s
        common stock, as the future sale of a substantial amount of its stock in
        the
        public marketplace could reduce the price of the Company&#8217;s common stock.
</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">20</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Substantial
        sales of the Company&#8217;s common stock in the public market, or the perception that
        such sales could occur, could result in the drop in the market price of its
        securities and make it more difficult for the Company to complete future
        equity
        financings on acceptable terms, if at all, by introducing a large number
        of
        sellers to the market. From time to time, certain of the Company&#8217;s stockholders
        may be eligible to sell all or some of their shares of common stock by means
        of
        ordinary brokerage transactions in the open market pursuant to Rule 144,
        promulgated under the Securities Act of 1933, as amended (&#8220;Rule 144&#8221;), subject
        to certain limitations. In general, pursuant to Rule 144, a stockholder (or
        stockholders whose shares are aggregated) who has satisfied a one-year holding
        period may, under certain circumstances, sell within any three-month period
        a
        number of securities which does not exceed the greater of 1% of the then
        outstanding shares of common stock or the average weekly trading volume of
        the
        class during the four calendar weeks prior to such sale. Rule 144 also permits,
        under certain circumstances, the sale of securities, without any limitations,
        by
        a non-affiliate of the Company that has satisfied a two-year holding period.
        In
        addition, Berman Health and Media, Inc. recently completed a private placement,
        whereby they granted the investors in the private placement certain registration
        rights with respect to the shares of common stock underlying their securities.
        Those securities are included in the securities being offered in this
        prospectus. Hunter World Markets, Inc. may also, in its sole discretion,
        permit
        certain of the Company&#8217;s current stockholders who are subject to contractual
        lock-up agreements to sell shares prior to the expiration of their lock-up
        agreements. The Company cannot estimate the number of shares of common stock
        that may actually be resold in the public market because this will depend
        on the
        market price for its common stock, the individual circumstances of the sellers
        and other factors. Any substantial sale of common stock pursuant to Rule
        144 or
        pursuant to any resale prospectus may have an adverse effect on the market
        price
        of the Company&#8217;s securities.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company&#8217;s common stock is considered to be a &#8220;penny
        stock.&#8221;</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s common stock is considered to be a "penny stock" as it meets one or
        more of the following definitions. A stock is generally considered to be
        a penny
        stock if it meets one or more of the definitions in Rules 15g-2 through 15g-6
        promulgated under Section 15(g) of the Securities Exchange Act of 1934, as
        amended. These include but are not limited to the following: (i) the stock
        trades at a price less than $5.00 per share; (ii) it is NOT traded on a
        "recognized" national exchange; (iii) it is NOT quoted on the NASDAQ Stock
        Market, or even if so, has a price less than $5.00 per share; or (iv) is
        issued
        by a company with net tangible assets less than $2.0 million, if in business
        more than a continuous three years, or with average revenues of less than
        $6.0
        million for the past three years. The principal result or effect of being
        designated a "penny stock" is that securities broker-dealers cannot recommend
        the stock but must trade in it on an unsolicited basis.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Broker-dealer
        requirements may affect trading and liquidity.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section
        15(g) of the Securities Exchange Act of 1934, as amended, and Rule 15g-2
        promulgated thereunder by the SEC require broker-dealers dealing in penny
        stocks
        to provide potential investors with a document disclosing the risks of penny
        stocks and to obtain a manually signed and dated written receipt of the document
        before effecting any transaction in a penny stock for the investor's
        account.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Potential
        investors in the Company&#8217;s common stock are urged to obtain and read such
        disclosure carefully before purchasing any shares that are deemed to be "penny
        stock." Moreover, Rule 15g-9 requires broker-dealers in penny stocks to approve
        the account of any investor for transactions in such stocks before selling
        any
        penny stock to that investor. This procedure requires the broker-dealer to
        (i)
        obtain from the investor information concerning his or her financial situation,
        investment experience and investment objectives; (ii) reasonably determine,
        based on that information, that transactions in penny stocks are suitable
        for
        the investor and that the investor has sufficient knowledge and experience
        as to
        be reasonably capable of evaluating the risks of penny stock transactions;
        (iii)
        provide the investor with a written statement setting forth the basis on
        which
        the broker-dealer made the determination in (ii) above; and (iv) receive
        a
        signed and dated copy of such statement from the investor, confirming that
        it
        accurately reflects the investor's financial situation, investment experience
        and investment objectives. Compliance with these requirements may make it
        more
        difficult for holders of the Company&#8217;s common stock to resell their shares to
        third parties or to otherwise dispose of them in the market or
        otherwise.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Company does not foresee paying cash dividends in the foreseeable future.
        </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company does not plan to pay cash dividends on its stock in the foreseeable
        future.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SPECIAL
        NOTE REGARDING FORWARD-LOOKING STATEMENTS</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        Current Report on Form 8-K contains certain forward-looking statements within
        the meaning of the Private Securities Litigation Reform Act of 1995, including
        the plans and objectives of management for the business, operations, and
        economic performance of the Company. These forward-looking statements generally
        can be identified by the context of the statements or the use of words such
        as
        the &#8220;Company&#8221; or its management "believes," "anticipates," "intends," "expects,"
        "plans" or words of similar meaning. Similarly, statements that describe
        the
        Company&#8217;s future operating performance, financial results, plans, objectives,
        strategies, or goals are forward-looking statements. Although management
        believes that the assumptions underlying the forward-looking statements are
        reasonable, these assumptions and the forward-looking statements are subject
        to
        various factors, risks and uncertainties, many of which are beyond the Company&#8217;s
        control. Accordingly, actual results could differ materially from those
        contemplated by the forward-looking statements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">These
        risks and uncertainties include, without limitation, those described under
&#8220;Risk
        Factors,&#8221; above.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        assumptions used for purposes of the forward-looking statements specified
        in the
        following information represent estimates of future events and are subject
        to
        uncertainty as to possible changes in economic, legislative, industry, and
        other
        circumstances. As a result, the identification and interpretation of data
        and
        other information and their use in developing and selecting assumptions from
        and
        among reasonable alternatives require the exercise of judgment. To the extent
        that the assumed events do not occur, the outcome may vary substantially
        from
        anticipated or projected results, and, accordingly, no opinion is expressed
        on
        the achievability of those forward-looking statements. The Company cannot
        guarantee that any of the assumptions relating to the forward-looking statements
        specified in the following information are accurate, and the Company assumes
        no
        obligation to update any such forward-looking statements. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        3.02</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNREGISTERED
        SALES OF EQUITY SECURITIES.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Berman
        Health and Media, Inc. recently closed a private placement offering of common
        stock and warrants (the &#8220;Units&#8221;) each consisting of (i) two shares of common
        stock, (ii) one three-year warrant exercisable into one share of common stock
        at
        an exercise price of $1.05 and (iii) one three year warrant exercisable into
        one
        share of common stock at an exercise price of $1.57. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Units
        were offered solely to persons who qualified as &#8220;accredited investors&#8221; within
        the meaning of Rule 501 of the Securities Act of 1933, as amended (the &#8220;Act&#8221;),
&#8220;Qualified Institutional Buyers&#8221; within the meaning of Rule 144A of the Act and
        to certain persons in offshore transactions in reliance on Regulation S of
        the
        Act. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        price
        per Unit was $1.05. In June 2005, Berman Health and Media, Inc. sold an
        aggregate of 2,952,381 Units and received $3,100,000 in gross proceeds from
        such
        sale. The securities were issued in reliance upon an exemption from registration
        with the SEC as provided by Section 4(2) of the Act and Regulation D and
        Regulation S promulgated thereunder and similar provisions under applicable
        state laws which provide exemptions from the securities registration provisions.
        The Company has agreed to assume the warrants issued by Berman Health and
        Media,
        Inc. in the private placement Each share of common stock underlying such
        warrants is now exercisable into 1.535999487 shares of the Company&#8217;s common
        stock. These warrants are currently exercisable into an aggregate of 9,069,714
        shares of the Company&#8217;s common stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the private placement, Berman Health and Media, Inc. entered
        into a placement agent agreement with Hunter World Markets, Inc. (&#8220;HWM&#8221;), the
        Company&#8217;s former controlling stockholder and one of the Company&#8217;s current
        stockholders, pursuant to which HWM offered for sale the Units on a &#8220;best
        efforts&#8221; basis. As consideration for HWM&#8217;s services, the Company is now
        obligated to pay HWM or HWM is entitled to receive (i) a $310,000 commission
        on
        the sale of the Units, (ii) reimbursement of up $62,000 in non-accountable
        expenses and (iii) three year warrants exercisable into 906,971 shares of
        the
        Company&#8217;s common stock. The warrants were issued in reliance upon an exemption
        from registration with the SEC as provided by Section 4(2) of the Act and
        Regulation D promulgated thereunder and similar provisions under applicable
        state law which provides exemptions from the securities registration provisions.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">22</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
        to
        converting into corporate form, Berman Health and Media, Inc. sold in 2003,
        2004
        and 2005 an aggregate of 3,767,390 membership interests in Berman Center
        LLC,
        solely to persons who qualified as &#8220;accredited investors&#8221; within the meaning of
        Rule 501 of the Act. Berman Health and Media, Inc. received an aggregate
        of
        $2,966,223 in proceeds from such sales. These securities converted into
        19,730,504 shares of the Company&#8217;s common stock upon consummation of the merger
        in June 2005. The securities were originally issued in reliance upon an
        exemption from registration with the SEC as provided by Section 4(2) of the
        Act
        and Regulation D promulgated thereunder and similar provisions under applicable
        state laws which provide exemptions from the securities registration
        provisions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, prior to converting into corporate form, Berman Health and Media,
        Inc.
        issued to certain &#8220;accredited investors&#8221; providing $400,000 in working capital
        to Berman Center LLC, three and a half year warrants exercisable into 117,315
        membership interests in the Berman Center LLC at an exercise price of
        $1.074034786. These warrants converted into warrants exercisable into 400,000
        shares of Berman Health and Media, Inc.&#8217;s common stock at an exercise price of
        $0.315 upon the reorganization of Berman Center LLC into corporate form.
        The
        Company agreed to assume these warrants in connection with the merger. Each
        share of common stock underlying such warrants is now exercisable into
        1.535999487 shares of the Company&#8217;s common stock. These warrants are currently
        exerciseable into an aggregate of 614,400 shares of the Company&#8217;s common stock.
        The securities were originally issued in reliance upon an exemption from
        registration with the SEC as provided by Section 4(2) of the Act and Regulation
        D promulgated thereunder and similar provisions under applicable state laws
        which provide exemptions from the securities registration
        provisions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        forms
        of warrants issued by Berman Health and Media, Inc. to investors and to HWM
        are
        attached as Exhibits 4.1, 4.2 and 4.3 to this Current Report on Form
        8-K.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        the Placement Agent Agreement between Berman Health and Media, Inc. and HWM
        is
        attached as Exhibit 10.2</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        4.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CHANGES
        IN REGISTRANT&#8217;S CERTIFYING ACCOUNTANT.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company recently engaged Singer Lewak Greenbaum &amp; Goldstein LLP as its
        independent registered public accountant to audit the consolidated financial
        statements of the Company for the year ended December 31, 2004.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        5.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CHANGES
        IN CONTROL OF REGISTRANT.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        June
        3, 2005, the Company, along with LBC MergerSub, Inc., a Nevada corporation
        and
        wholly owned subsidiary of the Company (&#8220;Merger Sub&#8221;) and certain existing
        stockholders of the Company entered into an Agreement and Plan of Merger
        (the
&#8220;Merger Agreement&#8221;) with Berman Health and Media, Inc., a privately held
        Delaware corporation, pursuant to which the Company would be acquired by
        BHM in
        a merger transaction wherein Merger Sub would merge with and into BHM, with
        BHM
        being the surviving corporation (the &#8220;Merger&#8221;). </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Merger resulted in a change-of-control by BHM and its stockholders and the
        assumption of BHM&#8217;s operations and liabilities. At the effective time of the
        Merger: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  Company merged Merger Sub with and into BHM and the separate corporate
                  existence of Merger Sub has ceased;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  Company had issued 19,730,504 shares of its restricted common stock,
                  and
                  314,230 options and 614,400 warrants to purchase additional shares
                  of its
                  restricted common stock to the stockholders of BHM in exchange
                  for 100% of
                  the issued and outstanding shares of common stock and warrants
                  to purchase
                  shares BHM&#8217;s common stock.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Also
        in
        connection with the Merger, the Company has deposited 2,303,999 shares of
        its
        common stock into an escrow account, which shall cover any claims for breach
        of
        warranties, indemnities, covenants or undertakings contained in the Merger
        Agreement raised by BHM during the two-year period following the closing
        of the
        Merger. &#160;&#160;In addition, the Company has reincorporated from
        the State
        of Georgia to the State of Delaware and has changed its corporate name from
&#8220;LB
        Center, Inc.&#8221; to &#8220;Berman Center, Inc.&#8221;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        a
        result of the Merger, the Company has become the parent corporation of BHM,
        and
        the stockholders of BHM have become shareholders of the Company. At the
        effectiveness of the Merger, the remaining shareholders of the Company owned
        approximately 13% of the issued and outstanding shares of the Company&#8217;s common
        stock, based on 22,725,703 shares outstanding after the Merger. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
        the Merger, Samuel P. Chapman, Laura A.C. Berman, Allan Charles, Alger Chapman,
        Stuart Cornew, Jan Fawcett, Robert Goodmen and Michael Romano, each of whom
        are
        directors of BHM, were appointed to the Board of Directors of the Company.
        In
        addition, the Company appointed Samuel P. Chapman as the Company&#8217;s Chairman and
        Chief Executive Officer, Laura A.C. Berman as President and William McDunn
        as
        Chief Financial Officer. Todd Ficeto resigned from all of his officer and
        director positions. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        transaction contemplated by the Merger Agreement is intended to be a &#8220;tax-free&#8221;
        incorporation pursuant to the provisions of Section 351 and 368(a)(i)(A)
        of the
        Internal Revenue Code of 1986, as amended.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        securities issued in connection with the Merger were issued in reliance upon
        an
        exemption from registration with the SEC as provided by Section 4(2) of the
        Act
        and Regulation D promulgated thereunder and similar provisions under applicable
        state law which provides exemptions from the securities registration provisions.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        May,
        2005, BHM began offering for sale units of its common stock and warrants
        (the
&#8220;Units&#8221;), each consisting of (i) two shares of its common stock, (ii) one
        three-year warrant exercisable into one share of its common stock at an exercise
        price of $1.05 and (iii) one three year warrant exercisable into one share
        of
        its common stock at an exercise price of $1.575. The price per Unit was $1.05.
        In June 2005, 2,952,381 Units were sold to certain of the selling security
        holders at an initial closing of the sale of the Units. In addition, BHM
        issued
        a warrant to purchase common stock to the placement agent in exchange for
        services provided to BHM in connection with the offering. After issuance
        of
        shares of common stock and warrants to purchase shares of common stock related
        to the private offering in June 2005, the Company had 31,795,415 shares of
        common stock outstanding and warrants and options to purchase 10,905,315
        shares
        of common stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITY
        OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT PRIOR TO THE
        MERGER</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following table sets forth information regarding the beneficial ownership
        of the
        shares of the Company&#8217;s common stock as of June 14, 2005, except as noted in the
        footnotes below, by: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
                  person who the Company knows to be the beneficial owner of 5% or
                  more of
                  its outstanding common stock; </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
                  of the Company&#8217;s executive officers;
</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
                  of the Company&#8217;s directors; and </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                  of the Company&#8217;s executive officers and directors as a group.
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beneficial
        ownership is determined in accordance with the rules of the SEC. In computing
        the number of shares beneficially owned by a person and the percentage of
        ownership of that person, shares of common stock subject to options held
        by that
        person that are currently exercisable or become exercisable within 60 days
        of
        June 14, 2005 are deemed outstanding even if they have not actually been
        exercised. Those shares, however, are not deemed outstanding for the purpose
        of
        computing the percentage ownership of any other person. As of June 14, 2005,
        2,995,199 shares of the Company&#8217;s common stock were issued and outstanding.
        Unless otherwise indicated in the table, the persons and entities named in
        the
        table have sole voting and sole investment power with respect to the shares
        set
        forth opposite the shareholder&#8217;s name, subject to community property laws, where
        applicable. The address of each shareholder is listed in the table.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">24</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div>
        <div>&#160;</div>
        <div>&#160;</div>
        <div>
          <table cellpadding="0" cellspacing="0" width="100%">

              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name
                    and Address Of Beneficial Owner</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amount
                    Of </font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beneficial
                    Ownership</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Percent
                    Of</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                    Class</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Todd
                    Ficeto(1) </font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,204,210</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40.2</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Corporate
                    Advisors Group</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,000,000</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33.4</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Petr
                    Ondrousek</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">400,000</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">13.4</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loman
                    International SA</font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">350,000</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.7</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                    directors and named executive officers as a group (one person)
                    </font></div>
                </td>
                <td width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,204,210</font></div>
                </td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40.2</font></div>
                </td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              </tr>

          </table>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">__________</font></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 27pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                  (i) 25,210 shares of the Company&#8217;s common stock owned by Hunter World
                  Markets, Inc. (&#8220;HWM&#8221;), (ii) 1,159,000 shares of the Company&#8217;s common stock
                  owned by Todd Ficeto, the President of Hunter World Markets, Inc.,
                  (v)
                  10,000 shares of the Company&#8217;s common stock owned by Hunter Ficeto, a
                  family member of Todd Ficeto and (vi) 10,000 shares of the Company&#8217;s
                  common stock owned by Natalia Ficeto, a family member of Todd
                  Ficeto.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 45pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITY
        OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT FOLLOWING THE
        MERGER</strong></font></div>
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        following table sets forth information with respect to the levels of beneficial
        ownership of the Company&#8217;s common stock owned upon the effectiveness of the
        Merger by: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
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            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
                  person who the Company knows to be the beneficial owner of 5% or
                  more of
                  its outstanding common stock; </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
                  of the Company&#8217;s executive officers;
</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
                  of the Company&#8217;s directors; and </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
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                  of the Company&#8217;s executive officers and directors as a group.
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
        to
        the Merger, the Company had 2,995,199 shares of its common stock issued and
        outstanding. After the Merger and the private offering taking place in June
        2005, as of June 16, 2005, the Company had 31,795,415 shares of its common
        stock
        issued and outstanding, in addition to options and warrants to purchase
        10,905,315 shares of the Company&#8217;s common stock, which could result in up to
        42,700,730 shares of common stock outstanding.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beneficial
        ownership is determined in accordance with the rules of the SEC. In computing
        the number of shares beneficially owned by a person and the percentage of
        ownership of that person, shares of common stock subject to options held
        by that
        person that are currently exercisable or become exercisable within 60 days
        of
        the closing date of the Merger, June 16, 2005, are deemed outstanding even
        if
        they have not actually been exercised. Those shares, however, are not deemed
        outstanding for the purpose of computing the percentage of any other person.
        Unless indicated otherwise, the address for each person named is c/o Berman
        Center, Inc., 211 East Ontario, Suite 800, Chicago, Illinois 60611.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">25</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div>
        <div>&#160;</div>
        <div><br>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: black thin solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name
                      and Address of Beneficial Owner or Identity of Group
                      (1)</strong></font></div>
                  </td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Amount
                      of<br>Beneficial<br>Ownership</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Percent
                      of Class</strong></font></div>
                  </td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                  <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="71%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Samuel
                      P. Chapman and Laura A. Berman (2)</font></div>
                  </td>
                  <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5,747,419</font></div>
                  </td>
                  <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18.08</font></div>
                  </td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="top" width="71%">&#160;</td>
                  <td valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="71%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alger
                      Chapman</font></div>
                  </td>
                  <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">436,431</font></div>
                  </td>
                  <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.37</font></div>
                  </td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="top" width="71%">&#160;</td>
                  <td valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="71%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stuart
                      Cornew</font></div>
                  </td>
                  <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">157,115</font></div>
                  </td>
                  <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
                  </td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="top" width="71%">&#160;</td>
                  <td valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="71%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
                      Goodman</font></div>
                  </td>
                  <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">157,115</font></div>
                  </td>
                  <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
                  </td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="top" width="71%">&#160;</td>
                  <td valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="71%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
                      Romano</font></div>
                  </td>
                  <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">157,115</font></div>
                  </td>
                  <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
                  </td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="top" width="71%">&#160;</td>
                  <td valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="71%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Allan
                      Charles (3)</font></div>
                  </td>
                  <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">157,115</font></div>
                  </td>
                  <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
                  </td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="top" width="71%">&#160;</td>
                  <td valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="71%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jan
                      Fawcett (4)</font></div>
                  </td>
                  <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
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                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*</font></div>
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                <tr bgcolor="#ffffff">
                  <td align="left" valign="top" width="71%">&#160;</td>
                  <td valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
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                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="71%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Esarbee
                      Investment Group</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1170
                      Peel</font></div>
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                      H3B4P2</font></div>
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                  <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,007,586</font></div>
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                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.31</font></div>
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                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="top" width="71%">&#160;</td>
                  <td valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="71%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">European
                      Capitalist Fund</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">c/o
                      Ogier Fiduciary Services (Cayman) Limited</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">P.O.
                      Box 1234GT Queensgate House</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">South
                      Church Street</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">George
                      Town</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Grand
                      Cayman, Cayman Islands (5)</font></div>
                  </td>
                  <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">18,954,283</font></div>
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                  <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">45.16</font></div>
                  </td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="top" width="71%">&#160;</td>
                  <td valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="71%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Hunter
                      World Markets, Inc.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9300
                      Wilshire Boulevard</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Penthouse
                      Suite</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beverly
                      Hills, CA 90212 (6)</font></div>
                  </td>
                  <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,495,181</font></div>
                  </td>
                  <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.54</font></div>
                  </td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
                  </td>
                </tr>
                <tr bgcolor="#ffffff">
                  <td align="left" valign="top" width="71%">&#160;</td>
                  <td valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="2%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                  <td align="right" valign="top" width="11%">&#160;</td>
                  <td align="left" valign="top" width="1%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="71%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                      current directors and officers as a group</font></div>
                  </td>
                  <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6,969,425</font></div>
                  </td>
                  <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
                  <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">21.92</font></div>
                  </td>
                  <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
                  </td>
                </tr>

            </table>
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">________________</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
        indicates less than 1%.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 18pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  persons named in this table have sole voting and investment power
                  with
                  respect to all shares of common stock listed. Beneficial ownership
                  also
                  includes that number of shares, which an individual has the right
                  to
                  acquire within 60 days (such as through the exercise of warrants
                  and
                  options) of the date of this Current Report on Form
                  8-K.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 18pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
                  Samuel P. Chapman owns together with his wife Dr. Laura A. Berman
                  2,897,906 shares of the Company&#8217;s common stock. Berman Center Holdings
                  LLC, which is owned by Mr. Samuel P. Chapman and Dr. Laura A. Berman,
                  owns
                  2,849,513 shares of the Company&#8217;s common
                  stock.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 18pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Represents
                  157,115 shares of Common Stock issuable upon exercise of stock
                  options
                  that are currently exercisable or exercisable within 60 days of
                  the date
                  of this Current Report on Form 8-K.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 18pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Represents
                  157,115 shares of Common Stock issuable upon exercise of stock
                  options
                  that are currently exercisable or exercisable within 60 days of
                  the date
                  of this Current Report on Form 8-K.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 18pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
                  amount includes (i) 4,388,572 shares of the Company&#8217;s common stock owned
                  by European Capitalist Fund (&#8220;ECP&#8221;), (ii) 4,388,569 shares of the
                  Company&#8217;s common stock owned by Absolute Return Europe Fund, an affiliate
                  of ECP, (iii) 1,000,000 shares of the Company&#8217;s common stock owned by
                  Corporate Advisors Group, an affiliate of ECP, (iv) warrants held
                  by
                  Corporate Advisors Group, an affiliate of ECP, currently exercisable
                  into
                  4,388,572 shares of common stock , (v) 400,000 shares of the Company&#8217;s
                  common stock owned by Peter Ondrousek, an affiliate of ECP and
                  (vi)
                  warrants held by Peter Ondrousek, an affiliate of ECP, currently
                  exercisable into 4,388,570 shares of common
                  stock.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 18pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
                  amount includes (i) 25,210 shares of the Company&#8217;s common stock owned by
                  Hunter World Markets, Inc. (&#8220;HWM&#8221;), (ii) warrants held by HWM currently
                  exercisable into 906,971 shares of the Company&#8217;s common stock, (iii)
                  warrants held by The Hunter Fund Ltd., an affiliate of HWM, currently
                  exercisable into 384,000 shares of the Company&#8217;s common stock, (iv)
                  1,159,000 shares of the Company&#8217;s common stock owned by Todd Ficeto, the
                  President of Hunter World Markets, Inc., (v) 10,000 shares of the
                  Company&#8217;s common stock owned by Hunter Ficeto, a family member of Todd
                  Ficeto and (vi) 10,000 shares of the Company&#8217;s common stock owned by
                  Natalia Ficeto, a family member of Todd
                  Ficeto.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">26</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXECUTIVE
        OFFICERS, DIRECTORS AND KEY EMPLOYEES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following discussion sets forth information regarding the Company&#8217;s executive
        officers and directors prior to and following the Merger.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Executive
        Officers and Directors Prior to the Merger</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="bottom" width="37%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Age</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Year
                  First Appointed </font></div>
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              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: black thin solid">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="31%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Positions</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="37%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Todd
                  Ficeto</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">38</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" valign="top" width="31%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sole
                  Director, Chief Executive Officer, Chief Financial Officer and
                  Secretary</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TODD
        FICETO</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Todd
        M.
        Ficeto, age 38, became the Company's sole Director, Chief Executive Officer,
        Chief Financial Officer and Secretary in December 2004 in connection with
        his
        acquisition of the majority of the Company's common stock. Mr. Ficeto founded
        Hunter World Markets, Inc. in 1995 and is currently its President and Chairman.
        Mr. Ficeto has been in the investment banking industry since 1989.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Executive
        Officers and Directors Following the Merger</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following new executive officers of the Company will be elected annually
        by the
        Board of Directors and the following new members of the Company&#8217;s Board of
        Directors will serve one year terms until the earlier of their death,
        resignation or removal by the Board of Directors:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="35%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Age</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="28%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Position</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td align="right" valign="bottom" width="16%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Year
                  First Appointed Executive Officer and/or Director of Berman Health
                  and
                  Media, Inc.</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="35%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Samuel
                  P. Chapman</font></div>
              </td>
              <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">40</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="28%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chairman,
                  Chief Executive Officer</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="35%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Laura
                  A.C. Berman, LICSW, PHD.</font></div>
              </td>
              <td valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="28%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President,
                  Director</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="16%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2003</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="35%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">William
                  McDunn</font></div>
              </td>
              <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">48</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="28%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                  Financial Officer</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="35%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Allan
                  Charles, M.D.</font></div>
              </td>
              <td valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">76</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="28%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="16%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="35%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alger
                  Chapman</font></div>
              </td>
              <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">73</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="28%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="35%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stuart
                  Cornew</font></div>
              </td>
              <td valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">47</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="28%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="16%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="35%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jan
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              <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
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              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="28%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="35%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
                  Goodman</font></div>
              </td>
              <td valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ffffff">
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              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="28%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="top" width="16%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="35%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
                  Romano</font></div>
              </td>
              <td valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="28%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
              <td align="left" valign="top" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="top" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="top" width="16%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">27</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
          following information describes the business experience during the past
          five
          years of the executive officers and directors named above and certain other
          persons who are expected to make significant contributions to the business
          of
          the Company.</font></div>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SAMUEL
        P.
        CHAPMAN</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Samuel
        P.
        Chapman has been President of Parson Capital Corporation for the past thirteen
        years. Parson Capital is a venture capital boutique firm specializing in
        start-up companies. He is also a Director of HDO, Inc. During his career
        with
        Parson Capital he founded several companies playing the role of financier
        and Co
        Chairman of the Board along with his partner. One of the companies he co-founded
        was Parson Group LLC, a consulting firm that achieved the number one ranking
        by
        Inc. Magazine as the fastest growing private company in America in the year
        2000. Parson Group was sold the following year to a British Company for $55
        million cash. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
        Chapman formerly worked for both Dillon Read &amp; Co., Inc. (now owned by UBS)
        and Lehman Brothers as a mergers and acquisitions specialist in New York.
        He is
        a member of the Board of Directors and former Cochairman of HDO Production
        a
        nationwide tent rental company. He is also a member of the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Young</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        Presidents Organization (YPO) and of the Economics Club of Chicago. He was
        formerly Co Chairman of Cantilever Technologies LLC, a software company he
        helped found, a past member of the Board of Trustees and the Executive Committee
        of the Rehabilitation Institute of Chicago, the top rehabilitation hospital
        in
        the world. Mr. Chapman graduated with a BA from Williams College in
        1986.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">LAURA
        A.C. BERMAN, LICSW, PHD.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Laura
        Berman has been working as a sex educator and therapist for over fifteen
        years.
        After obtaining her Master's in Clinical Social Work and Doctorate in Health
        Education and Therapy (specializing in human sexuality) at New York University,
        she went on to complete a training fellowship in Sexual Therapy with the
        Department of Psychiatry at New York University Medical Center.&#160;Dr.
        Berman
        is currently an Assistant Clinical Professor of OBGYN and Psychiatry in the
        Feinberg School of Medicine at Northwestern University. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Berman is chair of the Women&#8217;s Sexual Health State-Of-The-Art Series, an
        accredited program for the Council of Continuing Medical Education and currently
        serves on the foundation board of the Society for the Scientific Study of
        Sexuality (SSSS). She is also a member of the American Association of Sex
        Educators Counselors and Therapists (AASECT), the National Association of
        Social
        Workers (NASW), and is one of the few non-physician members of the American
        Urologic Association (AUA). She has been involved in numerous clinical sexual
        pharmacology trials, including acting as lead investigator for testing the
        effectiveness of Viagra on women's sexual complaints. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
        Berman has authored over 25 articles published in peer reviewed journals,
        and
        has been an invited speaker at over 45 venues in the United States and abroad.
        She recently wrote the chapter on female sexuality in Obstetrics and Gynecology,
        the definitive medical school text on the subject, edited by Dr. Sciarra,
        the
        past chair of the Department of OBGYN at Northwestern Memorial Hospital.
        Dr.
        Berman is also the recipient of many awards and honors, including Rising
        Star of
        the Year, (National Association of Women Business Owners, Los Angeles, February
        2002), Women of Action Award (Israel Cancer Research Fund, August 2002) and
        Women Who Make A Difference (Los Angeles Business Journal, August 2002).
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        July,
        1998, Dr. Berman founded the Women&#8217;s Sexual Health Center in the Department of
        Urology at Boston Medical Center. She was Co-Director there and established
        the
        first comprehensive protocol for treating female sexual dysfunction. In spring
        of 2000, she was recruited to UCLA Medical Center to start the Female Sexual
        Medicine Center, also within the department of Urology. She was Director
        of this
        Center until December 2002 when she moved to Chicago to join the clinical
        faculty of Northwestern Memorial Hospital and start Berman Center LLC.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">28</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ALLAN
        CHARLES, M.D.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Allan
        Charles is retired Chief of OBGYN at Michael Reese Hospital and Medical Center,
        retired Chairman of the Board of Directors for the Research and Education
        Foundation of the Michael Reese Medical Staff and presently Attending Physician
        in the Department of OBGYN at the same institution.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ALGER
        CHAPMAN</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alger
        Chapman is Director of the Cambridge Group. He is also the recently retired
        Chairman of ABN AMRO Financial Services, Inc. Prior to that Mr. Chapman was
        Chairman and CEO of the CBOE from 1986 to 1997. He is also on the Board of
        IArlington Capital, HDO Productions and Prime Insurance Holdings.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">STUART
        CORNEW</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stuart
        Cornew is Managing Director of Pattern Associates which he founded ten years
        ago. Pattern is a database mining and consulting company specializing in
        finding
        answers in large data sets for the financial services industry. Currently
        he
        also serves on the board of Harlem Furniture and the advisory board of the
        Northwestern University Cancer Center.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">JAN
        FAWCETT, M.D</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jan
        Fawcett is Professor at the University of New Mexico school of Medicine and
        the
        recently retired chairman of the Department of Psychiatry at
        Rush-Presbyterian-St. Luke&#8217;s Medical Center.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ROBERT
        GOODMAN</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
        Goodman is Chairman and CEO, Asia/Pacific Hudson Highland Group. The Hudson
        Highland Group is a world wide staffing, outsourcing and executive search
        firm,
        headquartered in Chicago, IL.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MICHAEL
        ROMANO</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
        Romano is immediate past CEO of Romano Brothers Beverage Company. Romano
        Brothers is the leading wine and spirits distributor in the State of Illinois.
        Mr. Romano sold his Company to Southern Wine and Spirits in late
        2002.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WILLIAM
        MCDUNN</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">William
        McDunn has over 15 years of experience in Finance and Accounting. He was
        the
        Controller for Parson Group for five years, managing a staff of 15 and reporting
        directly to the CFO. Prior to Parson Consulting, he was Division Controller
        for
        Stone Container Corporation and responsible for oversight of accounting
        activities in his business unit. Mr. McDunn received a BA in Accounting and
        Liberal Arts from University of Illinois in Chicago in 1979. He received
        his CPA
        in 1981 and an MBA from Loyola University in 1989.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>The
        following contains biographical information of other persons that are expected
        to make a significant contribution to the business of the
        Company.</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">KATHRYN
        L. MONKE</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kathryn
        L. Monke, age 38, has served as Manager, Center Operations of Berman Center
        since 2005. Ms. Monke has over eight years of experience with internal
        operations and systems. She was employed at Parson Group and most recently
        was a
        Senior Project Manager in internal operations and system implementation.
        Throughout her career she has gained experience in recruiting, interviewing,
        hiring, human resources, marketing, office management, training and
        documentation. Kathy received her Bachelor of Science in Marketing from Northern
        Illinois University. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">29</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DANA
        DEMAS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dana
        Demas, age 29, is a writer for Berman Center since 2004. Ms. Demas is the
        author
        of two books: Women&#8217;s Health and Wellness: An Illustrated Guide and Dog Breeds:
        An Illustrated Guide. She has a variety of writing and editing experience,
        including feature-length articles, newsletter and website content for clients
        from a diverse range of industries. Dana received her Bachelor of Arts in
        English and Psychology from the University of Vermont in 1998. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SUZANNE
        ROTH, MSN, APRN, BC</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Suzanne
        Roth, age 46, has served as Nurse Practitioner of Berman Center since 2004.
        Ms.
        Roth was most recently employed at Men&#8217;s Health Boston as a clinical study
        coordinator responsible for conducting/directing three clinical trials for
        patients with erectile dysfunction under the supervision of Abraham Morgentaler,
        M.D. She started her professional life at Massachusetts General Hospital
        as a
        Urological, Registered Professional Nurse. Suzanne received her Masters of
        Science in Nursing, Adult Primary Care and Women&#8217;s Health, from Simmons College.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">REBECCA
        JEFFERS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rebecca
        Jeffers, age 32, has served as a Fitness Expert of Berman Center since 2004.
        Ms.
        Jeffers has been a yoga instructor for six years and is also certified in
        mat
        Pilates. She was trained at the N. U. Yoga Center in Chicago, IL, where she
        was
        exposed to all the different yoga systems, serials, and sequencing of poses.
        She
        has also had training in diet and nutrition and holistic health, and experience
        in developing and delivering specialized programs.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">KERRIE
        GROW MCLEAN, PSYD, LPC</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Kerrie
        Grow McLean, age 31, has served as Psychotherapist of Berman Center since
        2004.
        Ms. McLean received her undergraduate degree in Psychology from Michigan
        State
        University, and received her Masters and Doctoral degrees in Clinical Psychology
        from Chicago School of Professional Psychology. &#160;She completed her
        training
        at Northwestern University&#8217;s Counseling and Psychological Services where she was
        a predoctoral intern. &#160;Dr. Grow McLean also trained as a sex therapist
        at
        the Loyola University Medical Center Sexual Dysfunction Clinic. &#160;Her
        experience includes individual, couples and sex therapy. &#160;Dr. Grow
        McLean
        specializes in treating women&#8217;s health issues including sexual health and
        functioning, body image, genital image, and menopausal health. &#160;She
        is
        currently a member of the American Association of Sex Educators Counselors
        and
        Therapists as well as the American Psychological Association. &#160;
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MARTHA
        WEINFURTER, BSN </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Martha
        Weinfurter, age 47, has served as Patient Concierge of Berman Center since
        2004.
        Ms. Weinfurter was most recently employed at Highland Park Hospital in Highland
        Park, IL as a Discharge Planner. She started her professional life at St.
        Luke's
        Hospital in Milwaukee, WI, where she worked on a medical unit and Kidney
        Dialysis. Martha then spent three years on a tertiary unit of Labor and Delivery
        at St. Joseph's Hospital in Milwaukee. She has experience as a community
        health
        nurse in the Washington D.C. area and received her Bachelor of Arts degree
        in
        Nursing from Marquette University in Milwaukee, Wisconsin.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Director
        Compensation</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company does not have an established policy to provide compensation to members
        of its Board of Directors for their services in that capacity. Directors
        are
        reimbursed for reasonable out-of-pocket expenses incurred in connection with
        attendance at Board meetings. Each of the Company&#8217;s outside directors (other
        than Jan Fawcett and Allan Charles) owns 157,115 shares of the Company&#8217;s common
        stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">30</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        December 2004, Berman Center LLC granted options to two of its outside
        directors, Jan Fawcett and Allan Charles, exercisable into an aggregate of
        60,000 units of Berman Center, LLC. These options become exercisable into
        204,578 shares of common stock of BHM upon the reorganization of Berman Center
        LLC into BHM. The Company agreed to assume the options upon closing of the
        merger and these options are now exercisable into an aggregate of 314,230
        shares
        of the Company&#8217;s common stock</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
        Board of Directors and Committees</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s Board of Directors does not maintain a separate audit, nominating or
        compensation committee. Functions customarily performed by such committees
        are
        performed by the Company&#8217;s Board of Directors as a whole. The Company is not
        required to maintain such committees under the rules applicable to companies
        listed on the Pink Sheets. None of the Company&#8217;s independent directors qualify
        as an "audit committee financial expert."</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Family
        Relationships</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Samuel
        P.
        Chapman is the husband of Dr. Laura A. Berman. In addition, Samuel P. Chapman
        is
        related to Alger Chapman. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXECUTIVE
        COMPENSATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
        Compensation Table</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following table sets forth information concerning the compensation for fiscal
        year 2003 and 2004 of the Company&#8217;s chief executive officer and one other
        executive officer whose annual salary and bonus exceeded $100,000 in such
        fiscal
        years (collectively, the &#8220;Named Executive Officers&#8221;). The amounts disclosed for
        fiscal year 2003 and 2004 for each of the Named Executive Officers relate
        to
        such person&#8217;s compensation received as an executive officer of BHM.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="75%">

            <tr>
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="9" valign="bottom" width="40%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Annual
                  Compensation</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup><strong><em>(1)</em></strong></sup></font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Name
                  and Principal Position</em></strong></font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Year</em></strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Salary($)</em></strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em><strong>Bonus($)</strong></em></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                </div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Samuel
                  P. Chapman - Chairman and Chief Executive Officer</em></font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>2003</em></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>$</em></font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>0</em></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>$</em></font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>0</em></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="57%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>2004</em></font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%"><em><font size="2">$</font></em></td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>110,769</em></font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%"><em><font size="2">$</font></em></td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>0</em></font></div>
              </td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="57%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Laura
                  A. C. Berman - President</em></font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>2003</em></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>$</em></font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>0</em></font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>$</em></font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>0</em></font></div>
                </div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="57%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>2004</em></font></div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%"><em><font size="2">$</font></em></td>
              <td align="right" valign="bottom" width="11%">
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              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%"><em><font size="2">$</font></em></td>
              <td align="right" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>0</em></font></div>
              </td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        amounts disclosed exclude perquisites and other personal benefits, securities
        or
        property, which, for fiscal year 2003 and 2004 aggregated less than the lower
        of
        $50,000 or 10% of the total of annual salary and bonus reported for each
        Named
        Executive Officer.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Employment
        Agreements</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company and Dr. Laura Berman have entered into a three-year employment
        agreement. Pursuant to such agreement, Dr. Berman will receive an annual
        salary
        of $200,000, provided that under certain circumstances the Company&#8217;s Board of
        Directors may increase her salary. In addition, Dr. Berman has also agreed
        to
        contribute to the Company all income, revenue and other compensation received
        by
        Dr. Berman in connection with activities related to the business operations
        of
        the Company during her employment, including, without limitation, all revenue
        from media sources, talent agreements with television production companies
        or
        other media sources and authorship royalties. These items are the Company&#8217;s sole
        property and may not be removed from the Company without approval of at least
        a
        majority in interest of the Company&#8217;s stockholders and adequate compensation to
        the Company. The contribution of income and revenues describe above, however,
        does not include income, revenue and other compensation derived by Dr. Berman
        from honorarium fees and speaking engagements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
          copy of
          Dr. Berman&#8217;s Employment Agreement is attached as Exhibit 10.1 to this Current
          Report on Form 8-K.</font></div><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">31</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Certain
        Relationships and Related Transactions</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEMNIFICATION
        FOR SECURITIES ACT LIABILITIES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        Section 145 of the General Corporation Law of the State of Delaware, the
        Company
        can indemnify its directors and officers against liabilities they may incur
        in
        such capacities, including liabilities under the Securities Act of 1933,
        as
        amended (the &#8220;Securities Act&#8221;). The Company&#8217;s certificate of incorporation
        provides that, pursuant to Delaware law, its directors shall not be liable
        for
        monetary damages for breach of the directors&#8217; fiduciary duty of care to the
        Company and its stockholders. This provision in the certificate of incorporation
        does not eliminate the duty of care, and in appropriate circumstances equitable
        remedies such as injunctive or other forms of nonmonetary relief will remain
        available under Delaware law. In addition, each director will continue to
        be
        subject to liability for breach of the director&#8217;s duty of loyalty to the Company
        or its stockholders, for acts or omissions not in good faith or involving
        intentional misconduct or knowing violations of the law, for actions leading
        to
        improper personal benefit to the director, and for payment of dividends or
        approval of stock repurchases or redemptions that are unlawful under Delaware
        law. The provision also does not affect a director&#8217;s responsibilities under any
        other law, such as the federal securities laws or state or federal environmental
        laws.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s bylaws provide for the indemnification of its directors to the fullest
        extent permitted by the Delaware General Corporation Law. The Company&#8217;s bylaws
        further provide that its Board of Directors has sole discretion to indemnify
        its
        officers and other employees. The Company may limit the extent of such
        indemnification by individual contracts with its directors and executive
        officers, but have not done so. The Company is required to advance, prior
        to the
        final disposition of any proceeding, promptly on request, all expenses incurred
        by any director or executive officer in connection with that proceeding on
        receipt of an undertaking by or on behalf of that director or executive officer
        to repay those amounts if it should be determined ultimately that he or she
        is
        not entitled to be indemnified under the Company&#8217;s bylaws or otherwise. The
        Company is not, however, required to advance any expenses in connection with
        any
        proceeding if a determination is reasonably and promptly made by its Board
        of
        Directors by a majority vote of a quorum of disinterested Board members that
        (a)
        the party seeking an advance acted in bad faith or deliberately breached
        his or
        her duty to the Company or its stockholders and (b) as a result of such actions
        by the party seeking an advance, it is more likely than not that it will
        ultimately be determined that such party is not entitled to indemnification
        pursuant to the applicable sections of its bylaws.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company has been advised that in the opinion of the Securities and Exchange
        Commission, insofar as indemnification for liabilities arising under the
        Securities Act may be permitted to the Company&#8217;s directors, officers and
        controlling persons pursuant to the foregoing provisions, or otherwise, such
        indemnification is against public policy as expressed in the Securities Act
        and
        is therefore unenforceable. In the event a claim for indemnification against
        such liabilities (other than the Company&#8217;s payment of expenses incurred or paid
        by its director, officer or controlling person in the successful defense
        of any
        action, suit or proceeding) is asserted by such director, officer or controlling
        person in connection with the securities being registered, the Company will,
        unless in the opinion of its counsel the matter has been settled by controlling
        precedent, submit to a court of appropriate jurisdiction the question of
        whether
        such indemnification by the Company is against public policy as expressed
        in the
        Securities Act and will be governed by the final adjudication of such
        issue.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>POST
        MERGER DESCRIPTION OF CAPITAL STOCK</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company is authorized to issue 100,000,000 shares of common stock, $0.001
        par
        value per share and 50,000,000 shares of preferred stock, $0.001 par value
        per
        share. The following description of the Company&#8217;s capital stock does not purport
        to be complete and is governed by and qualified by the Company&#8217;s certificate of
        incorporation and bylaws, which are included as exhibits to this Current
        Report
        on Form 8-K, forms a part, and by the provisions of applicable Delaware
        law.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">32</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Preferred
        Stock</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        June 16, 2005, the Company had no shares of preferred stock outstanding.
        The
        Board of Directors of the Company has the power to issue shares of preferred
        stock from time to time in one or more series. Pursuant to the Company&#8217;s
        Certificate of Incorporation, the Board of Directors is authorized to fix
        or
        alter the designations, powers, preferences and other rights and restrictions
        of
        the preferred stock, including, without limitation, the dividend rights,
        conversion rights and voting rights of the preferred stock. The Company&#8217;s Board
        of Directors can issue preferred stock without any stockholder approval with
        voting, conversion and other rights that could adversely affect the voting
        power
        and other rights of the holders of common stock. The issuance of preferred
        stock
        in certain circumstances may have the effect of delaying, deferring or
        preventing a change in control of the Company, may discourage bids of the
        Company&#8217;s common stock at a premium over the market price of the common stock
        and may adversely affect the market price of its common stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
        stock</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        of
        June 16, 2005, the Company had 31,795,415 shares of common stock outstanding,
        which were held of record and beneficially by approximately 66 stockholders.
        As
        of June 16, 2005, there were 10,591,085 shares of common stock underlying
        outstanding warrants and 314,230 shares of common stock underlying outstanding
        stock options. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        holders of the Company&#8217;s common stock are entitled to one (1) vote per share on
        all matters submitted to a vote of its stockholders. In addition, subject
        to the
        preferences applicable to any shares of preferred stock outstanding, such
        holders are entitled to receive ratably such dividends, if any, as may be
        declared from time to time by the Company&#8217;s Board of Directors out of funds
        legally available therefore. In the event of the dissolution, liquidation
        or
        winding up of the Company, the holders of common stock are entitled to share
        ratably in all assets remaining after payment of all liabilities of the Company
        and any preferences applicable to any shares of preferred stock outstanding.
        The
        holders of common stock do not have any subscription, redemption or conversion
        rights, nor do they have any preemptive or other rights to acquire or subscribe
        for additional, unissued or treasury shares.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the Company&#8217;s bylaws, except for any matters which pursuant to Delaware law
        require a greater percentage vote for approval, the holders of a majority
        of the
        outstanding shares of common stock, if present in person or by proxy, are
        sufficient to constitute a quorum for the transaction of business at meetings
        of
        its stockholders. Except as to any matters which pursuant to Delaware law
        require a greater percentage vote for approval, the affirmative vote of the
        holders of a majority of the shares of common stock present in person or
        by
        proxy at any meeting (provided a quorum is present) is sufficient to authorize,
        affirm or ratify any act or action, including the election of the Company&#8217;s
        Board of Directors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        holders of the Company&#8217;s common stock do not have cumulative voting rights.
        Accordingly, the holders of more than half of the outstanding shares of common
        stock can elect all of the directors to be elected in any election, if they
        choose to do so. In such event, the holders of the remaining shares of common
        stock would not be able to elect any directors. The purchasers of a majority
        of
        interests of the units that BHM recently sold in a private placement have
        the
        right to designate one member to the Board for a period of one year following
        the closing of the merger with BHM. The Company&#8217;s Board of Directors is
        empowered to fill any vacancies on the Board created by the resignation,
        death
        or removal of directors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition to voting at duly called meetings at which a quorum is present in
        person or by proxy, Delaware law and the Company&#8217;s bylaws provide that
        stockholders may take action without the holding of a meeting by written
        consent
        or consents signed by the holders of a majority of the outstanding shares
        of the
        Company&#8217;s capital stock entitled to vote thereon. Prompt notice of the taking of
        any action without a meeting by less than unanimous consent of the stockholders
        will be given to those stockholders who do not consent in writing to the
        action.
        The purposes of this provision are to facilitate action by stockholders and
        to
        reduce the corporate expense associated with special meetings of
        stockholders.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Warrants
        </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BHM
        issued to certain of the selling security holders three and a half year warrants
        to purchase 400,000 shares of its common stock at an exercise price of $0.315.
        The Company has agreed to assume these warrants in connection with the
        merger.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">33</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BHM
        issued to certain of the selling security holders three year warrants
        exercisable into 2,952,381 shares of its common stock at an exercise price
        of
        $1.05 (the &#8220;Class A Warrants&#8221;). </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company agreed to assume these warrants in connection with the merger. The
        Class
        A Warrants are currently exercisable into 4,534,856 shares of the Company&#8217;s
        common stock. The Class A Warrants are redeemable by the Company at a price
        of
        $.05 per Class A Warrant in the event (i) there is an effective registration
        statement covering the shares of common stock underlying the Class A Warrants
        and (ii) the closing market price of shares of common stock listed on a national
        securities market equals or exceeds $1.575 for twenty of the thirty consecutive
        trading days immediately preceding the Company&#8217;s notice of redemption to the
        holders of the Class A Warrants. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BHM
        issued to certain of the selling security holders three year warrants
        exercisable into 2,952,381 shares of its common stock at an exercise price
        of
        $1.575 (the &#8220;Class B Warrants&#8221;). The Company agreed to assume these warrants in
        connection with the merger. The Class B Warrants are currently exercisable
        into
        4,534,856 shares of the Company&#8217;s common stock. The Class B Warrants are
        redeemable by the Company at a price of $.05 per Class B Warrant in the event
        (i) there is an effective registration statement covering the shares of common
        stock underlying the Class B Warrants and (ii) the closing market price of
        shares of common stock listed on a national securities market equals or exceeds
        $2.10 for twenty of the thirty consecutive trading days immediately preceding
        the Company&#8217;s notice of redemption to the holders of the Class B
        Warrants.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">BHM
        issued three year warrants to Hunter World Markets, Inc. exercisable into
        590,476 shares of its common stock. The Company agreed to assume these warrants
        in connection with the merger. These warrants are currently exercisable 906,971
        shares of the Company&#8217;s common stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stock
        Options</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        December 2004, Berman Center LLC granted options to two of its outside
        directors, Jan Fawcett and Allan Charles, exercisable into an aggregate of
        60,000 units of Berman Center, LLC. These options become exercisable into
        204,578 shares of common stock of BHM upon the reorganization of Berman Center
        LLC into BHM. The Company agreed to assume the options upon closing of the
        merger and these options are now exercisable into an aggregate of 314,230
        shares
        of the Company&#8217;s common stock. The options are fully vested and expire ten years
        from the date of grant. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Market
        Price of The Company&#8217;s Common Stock</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        price
        of the Company&#8217;s common stock will likely fluctuate in the future. The stock
        market in general has experienced extreme stock price fluctuations in the
        past
        few years. In some cases, these fluctuations have been unrelated to the
        operating performance of the affected companies. Many companies have experienced
        dramatic volatility in the market prices of their common stock. The Company
        believes that a number of factors, both within and outside its control, could
        cause the price of the Company&#8217;s common stock to fluctuate, perhaps
        substantially. Factors such as the following could have a significant adverse
        impact on the market price of its common stock:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  Company&#8217;s ability to obtain additional financing and, if available, the
                  terms and conditions of the
                  financing;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  Company&#8217;s financial position and results of
                  operations;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Concern
                  as to, or other evidence of, the safety or efficacy of the Company&#8217;s
                  proposed products and services or its competitors&#8217; products and
                  services;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Announcements
                  of technological innovations or new products or services by the
                  Company or
                  its competitors;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">U.S.
                  and foreign governmental regulatory
                  actions;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  development of litigation against the
                  Company;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">34</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Period-to-period
                  fluctuations in the Company&#8217;s operating
                  results;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
                  in estimates of the Company&#8217;s performance by any securities
                  analysts;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Possible
                  regulatory requirements on the Company&#8217;s
                  business;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  issuance of new equity securities pursuant to a future
                  offering;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Changes
                  in interest rates;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Competitive
                  developments, including announcements by competitors of new products
                  or
                  services or significant contracts, acquisitions, strategic partnerships,
                  joint ventures or capital
                  commitments;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Variations
                  in quarterly operating results;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Change
                  in financial estimates by securities
                  analysts;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                  depth and liquidity of the market for the Company&#8217;s common
                  stock;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investor
                  perceptions of the Company and Dr. Berman;
                  and</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
                  economic and other national
                  conditions.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Delaware
        Anti-Takeover Law and Charter and Bylaw Provisions</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company is subject to Section 203 of the Delaware General Corporation Law.
        This
        provision generally prohibits a Delaware corporation from engaging in any
        business combination with any interested stockholder for a period of three
        years
        following the date the stockholder became an interested stockholder, unless:
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">prior
                  to such date, the Board of Directors approved either the business
                  combination or the transaction that resulted in the stockholder
                  becoming
                  an interested stockholder; </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">upon
                  consummation of the transaction that resulted in the stockholder
                  becoming
                  an interested stockholder, the interested stockholder owned at
                  least 85%
                  of the voting stock of the corporation outstanding at the time
                  the
                  transaction commenced, excluding for purposes of determining the
                  number of
                  shares outstanding those shares owned by persons who are directors
                  and
                  also officers and by employee stock plans in which employee participants
                  do not have the right to determine confidentially whether shares
                  held
                  subject to the plan will be tendered in a tender or exchange offer;
                  or
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">on
                  or subsequent to such date, the business combination is approved
                  by the
                  Board of Directors and authorized at an annual meeting or special
                  meeting
                  of stockholders and not by written consent, by the affirmative
                  vote of at
                  least 66 2/3% of the outstanding voting stock that is not owned
                  by the
                  interested stockholder. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section
        203 defines a business combination to include: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                  merger or consolidation involving the corporation and the interested
                  stockholder; </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                  sale, transfer, pledge or other disposition of 10% or more of the
                  assets
                  of the corporation involving the interested stockholder;
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">subject
                  to certain exceptions, any transaction that results in the issuance
                  or
                  transfer by the corporation of any stock of the corporation to
                  the
                  interested stockholder; </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">35</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
                  transaction involving the corporation that has the effect of increasing
                  the proportionate share of the stock of any class or series of
                  the
                  corporation beneficially owned by the interested stockholder; or
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                  receipt by the interested stockholder of the benefit of any loans,
                  advances, guarantees, pledges or other financial benefits provided
                  by or
                  through the corporation. </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        general, Section 203 defines an &#8220;interested stockholder&#8221; as any entity or person
        beneficially owning 15% or more of the outstanding voting stock of a
        corporation, or an affiliate or associate of the corporation and was the
        owner
        of 15% or more of the outstanding voting stock of a corporation at any time
        within three years prior to the time of determination of interested stockholder
        status; and any entity or person affiliated with or controlling or controlled
        by
        such entity or person. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s certificate of incorporation and bylaws contain provisions that could
        have the effect of discouraging potential acquisition proposals or making
        a
        tender offer or delaying or preventing a change in control of the Company,
        including changes a stockholder might consider favorable. In particular,
        the
        Company&#8217;s certificate of incorporation and bylaws, as applicable, among other
        things, will:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provide
                  the Company&#8217;s board of directors with the ability to alter its bylaws
                  without stockholder approval;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provide
                  for an advance notice procedure with regard to the nomination of
                  candidates for election as directors and with regard to business
                  to be
                  brought before a meeting of
                  stockholders;</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 72pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provide
                  that vacancies on the Company&#8217;s board of directors may be filled by a
                  majority of directors in office, although less than a quorum.
                  </font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Such
        provisions may have the effect of discouraging a third-party from acquiring
        the
        Company, even if doing so would be beneficial to its stockholders. These
        provisions are intended to enhance the likelihood of continuity and stability
        in
        the composition of the Company&#8217;s board of directors and in the policies
        formulated by them, and to discourage some types of transactions that may
        involve an actual or threatened change in control of the Company. These
        provisions are designed to reduce the Company&#8217;s vulnerability to an unsolicited
        acquisition proposal and to discourage some tactics that may be used in proxy
        fights. The Company believes that the benefits of increased protection of
        its
        potential ability to negotiate with the proponent of an unfriendly or
        unsolicited proposal to acquire or restructure the Company outweigh the
        disadvantages of discouraging such proposals because, among other things,
        negotiation of such proposals could result in an improvement of their terms.
        However, these provisions could have the effect of discouraging others from
        making tender offers for the Company&#8217;s shares that could result from actual or
        rumored takeover attempts. These provisions also may have the effect of
        preventing changes in the Company&#8217;s management.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="center">
        <table bgcolor="#ffffff" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="#ffffff">
              <td valign="top" width="8%"><strong><font size="2">ITEM
                5.02</font></strong></td>
              <td valign="top" width="92%">
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DEPARTURE
                  OF DIRECTORS AND PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT
                  OF
                  PRINCIPAL OFFICERS.</strong></font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
        the merger with BHM, Samuel P. Chapman, Laura A.C. Berman, Allan Charles,
        Alger
        Chapman, Stuart Cornew, Jan Fawcett, Robert Goodmen and Michael Romano, each
        of
        whom are directors of BHM, were appointed to the Board of Directors of the
        Company. In addition, the Company appointed Samuel P. Chapman as the Company&#8217;s
        Chairman and Chief Executive Officer, Laura A.C. Berman as President and
        William
        McDunn as Chief Financial Officer. Todd Ficeto resigned from all of his officer
        and director positions. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        more
        information regarding the directors and principal officers of the Company,
        please refer to Item 5.01, above.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">36</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        5.03</strong></font>&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>AMENDMENTS
        TO CERTIFICATE OF INCORPORATION OR BYLAWS; CHANGE IN FISCAL
        YEAR.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        June
        20, 2005, the Company filed a Certificate of Incorporation to effectuate
        (i) a
        reincorporation from the State of Georgia to the State of Delaware and (ii)
        a
        corporate name change from "LB Center, Inc." to &#8220;Berman Center,
        Inc.&#8221;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        the Certificate of Incorporation is attached hereto as Exhibit 3.1.
</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the reincorporation, the Company adopted new Bylaws to conform
        to the corporate laws of the State of Delaware. A copy is attached hereto
        as
        Exhibit 3.2.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        more
        information pertaining to the Company&#8217;s Certificate of Incorporation and Bylaws,
        please refer to Item 5.01, above.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        9.01. FINANCIAL STATEMENTS AND EXHIBITS.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
        </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
        Statements of Business Acquired. No financial statements are filed herewith.
        The
        Company will file the required financial statements by amendment hereto not
        later than 71 days after the date this Current Report on Form 8-K must be
        filed.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
        </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
        Forma
        Financial Statements. No pro forma financial statements are filed herewith.
        The
        Registrant will file the required pro forma financial statements by amendment
        not later than 71 days after the date this Current Report on Form 8-K must
        be
        filed.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)
        </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.1</font></div>
              </td>
              <td align="left" valign="top" width="71%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Agreement
                  and Plan of Merger dated June 3, 2005 by and among Berman Center,
                  Inc.,
                  LBC MergerSub, Inc. and Berman Health and Media, Inc. </font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.1</font></div>
              </td>
              <td align="left" valign="top" width="71%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certificate
                  of Incorporation of the Registrant.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.2</font></div>
              </td>
              <td align="left" valign="top" width="71%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By-Laws
                  of the Registrant.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
              </td>
              <td align="left" valign="top" width="71%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Stock Purchase Warrant (Class A) dated as of June 16, 2005 issued
                  by
                  the Registrant to the Warrant Holders indicated on the schedule
                  thereto.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
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              </td>
              <td align="left" valign="top" width="71%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Stock Purchase Warrant (Class B) dated as of June 16, 2005 issued
                  by
                  the Registrant to the Warrant Holders indicated on the schedule
                  thereto.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.3</font></div>
              </td>
              <td align="left" valign="top" width="71%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Stock Purchase Warrant dated as of June 16, 2005 issued by the
                  Registrant to Hunter World Markets, Inc.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
              </td>
              <td align="left" valign="top" width="71%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employment
                  Agreement dated June 16, 2005, by and among the Registrant and
                  Dr. Laura
                  A.C. Berman.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font></div>
              </td>
              <td align="left" valign="top" width="71%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Placement
                  Agent Agreement dated April 11, 2005 by and among Berman Health
                  and Media,
                  Inc. and Hunter world Markets, Inc.</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
              </td>
              <td align="left" valign="top" width="71%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release.</font></div>
              </td>
            </tr>

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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Exchange Act of 1934, the Registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized.</font></div>
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              <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>BERMAN
                CENTER, INC.</strong></font></strong></font></td>
            </tr>
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              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<br>&#160;</font></td>
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              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;June
                22, 2005</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;<em>Samuel
                P. Chapman</em></font></td>
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              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Samuel
                P. Chapman<br></font></font>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                  Executive Officer</font></div>
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{"company-data": {"conformed-name": "BIO DYNE CORP /GA", "cik": "0000876160", "assigned-sic": "3949", "irs-number": "581865733", "state-of-incorporation": "GA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-19562", "film-number": "05910664"}, "business-address": {"street1": "5400 BUCKNELL DR SW", "city": "ATLANTA", "state": "GA", "zip": "30336", "phone": "4043463100"}, "mail-address": {"street1": "3883 PEMBROKE ROAD", "city": "HOLLYWOOD", "state": "FL", "zip": "33021"}}
Unassociated Document
SECURITIES
        AND EXCHANGE COMMISSION
WASHINGTON,
        D.C. 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): June 16, 2005
BERMAN
        CENTER, INC.
(Exact
        Name of Registrant as Specified in Charter)
Delaware
0-19562
58-1865733
(State
                  or other jurisdiction
(Commission
(IRS
                  Employer
of
                  incorporation)
File
                  Number)
Identification
                  No.)
211
                  East Ontario, Suite 800, Chicago Illinois
60611
(Address
                  of principal executive offices)
(Zip
                  code)
Registrant's
                  telephone number, including area code:
(312)
                  255-8088
Bio-Dyne
        Corporation
5400
        Bucknell Dr. S.W., Atlanta Georgia 30336
(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 any of 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
        2.01
COMPLETION
        OF ACQUISITION OR DISPOSITION OF ASSETS
On
        June
        3, 2005, Berman Center, Inc. (f/k/a "LB Center, Inc." and "Bio-Dyne Corporation"
        and referred to herein as the "Company") along with LBC MergerSub, Inc., a
        Nevada corporation and wholly owned subsidiary of the Company ("Merger Sub") and
        certain existing stockholders of the Company entered into an Agreement and
        Plan
        of Merger (the "Merger Agreement") with Berman Health and Media, Inc., a
        privately held Delaware corporation ("BHM"), pursuant to which the Company would
        be acquired by BHM in a merger transaction wherein Merger Sub would merge
        with
        and into BHM, with BHM being the surviving corporation (the "Merger").
On
        June
        16, 2005, the Merger closed and BHM became a wholly-owned subsidiary of the
        Company.
Principal
        Terms of the Merger
At
        the
        Effective Time of the Merger (as defined in the Merger Agreement), Merger
        Sub
        was merged with and into BHM, the separate existence of Merger Sub ceased,
        and
        BHM continued as the surviving corporation (the "Surviving Corporation"). The
        transactions contemplated by the Merger Agreement were intended to be a
"tax-free" reorganization pursuant to the provisions of Section 368(a) of the
        Internal Revenue Code of 1986, as amended. The Certificate of Incorporation
        and
        Bylaws of BHM as in effect immediately prior to the Effective Time of the
        Merger
        became the Certificate of Incorporation and Bylaws of the Surviving Corporation.
Each
        share of BHM's common stock outstanding immediately prior to the Effective Time
        was converted into 1.535999487 shares of the Company's common stock as of the
        Effective Time. The Company assumed all outstanding warrants and stock options
        of BHM exercisable into shares of BHM common stock upon consummation of the
        Merger. Each such warrant and stock option exercisable into one share of
        BHM's
        common stock is now exercisable into 1.535999487 shares of the Company's common
        stock. Such warrants and stock options continue to have, and be subject to,
        the
        same terms and conditions of such stock options and warrants immediately
        prior
        to the Effective Time.
Pursuant
        to the Merger Agreement, the Company deposited 2,303,999 shares of its common
        stock into an escrow account, which shall cover any claims for breach of
        representations, warranties, covenants and agreements of the Company contained
        in the Merger Agreement during the 24-month period following the closing
        of the
        Merger.
The
        Merger resulted in a change-in-control of the Company by BHM and its
        stockholders and the assumption of BHM's assets, operations and liabilities.
        Following the Merger, Samuel P. Chapman, Laura A.C. Berman, Allan Charles,
        Alger
        Chapman, Stuart Cornew, Jan Fawcett, Robert Goodmen and Michael Romano, each
        of
        whom are directors of BHM, were appointed to the Board of Directors of the
        Company. In addition, the Company appointed Samuel P. Chapman as the Company's
        Chairman and Chief Executive Officer, Laura A.C. Berman as President and
        William
        McDunn as Chief Financial Officer.
In
        connection with the closing of the Merger, the Company reincorporated from
        the
        State of Georgia to the State of Delaware and changed its corporate name
        from
"LB Center, Inc." to "Berman Center, Inc."
A
        copy of
        the press release announcing the closing of the Merger is attached as Exhibit
        99.1 to this Current Report on Form 8-K.
A
        copy of
        the Merger Agreement is attached as Exhibit 2.1 to this Current Report on
        Form
        8-K.
The
        foregoing description is not a description of all of the material terms of
        the
        Merger. Investors should read the documents that are referenced in this Current
        Report for a more complete understanding of the transaction.
THE
        COMPANY
Berman
        Center, Inc. is a multimedia enterprise specializing in women's health, active
        across the domains of radio, television, and print media, including books,
        magazines and newspapers. Dr. Laura Berman is a premier name in women's sexual
        health, a leading researcher in the field and has created a multi-faceted
        platform for reaching out to consumers in a variety of settings, including
        the
        entertainment medium, product sales, medical services and online subscription
        services.
2
The
        Company's Chicago location is housed in a state-of-the-art facility, comprising
        approximately 10,000 square feet and located in downtown Chicago near
        Northwestern Memorial Hospital and the Magnificent Mile shopping district.
        The
        Company's clinical staff works to improve every patient's quality of life,
        health and relationships. The Company operates a full-scale hormonal management
        clinic, counseling center and sexual function testing center, marketed through
        a
        diversified media platform based on Dr. Laura Berman's reputation as a female
        sexual health and relationship expert. The Company anticipates entering the
        on-line dating market and the home video market in addition to supplementing
        its
        current efforts in publishing, continuing medical education courses and medical
        research. The Company also intends to open additional clinics in other large
        cities and suburbs.
COMPANY
        HISTORY
The
        Company was incorporated in October 1989 under the laws of the State of Georgia
        under the name William E. York, Inc. for the purpose of acquiring Bio-Dyne
        Corporation, a Georgia corporation formed in 1986 ("Bio-Dyne") and ECBB Body
        Building, Ltd., a New York corporation formed in 1979 ("ECBB"), which
        collectively manufactured, marketed and distributed multi-station home gyms,
        exercise machines, weight benches and specialty free weight
        equipment.
In
        November 1989, the Company acquired all of the issued and outstanding shares
        of
        capital stock of Bio-Dyne and ECBB. Following the closing of the transaction,
        Bio-Dyne was formally dissolved and a Certificate of Dissolution of ECBB
        was
        filed with the Department of State of New York. Thereafter, the Company used
        the
        trade name Bio-Dyne and in January 1991, changed its name from William E.
        York,
        Inc. to Bio-Dyne Corporation.
The
        Company ceased active operations after the filing of bankruptcy in
        1996.
On
        January 18, 2005, the Company changed its name to No Good TV, Inc. The Company's
        shares were subsequently quoted on the Pink Sheets under the symbol
"NTVN."
In
        May
        2005, the Company changed its name to LB Center, Inc.
On
        June
        3, 2005, the Company entered into an Agreement and Plan of Merger with Berman
        Health and Media, Inc. (f/k/a The Berman Center, Inc.), a privately held
        Delaware corporation ("BHM"), pursuant to which the stockholders of BHM acquired
        approximately 87% of the Company's issued and outstanding common stock through a
        merger transaction, with the Company's existing stockholders continuing to own
        the remaining 13% of the Company's issued and outstanding common stock after the
        merger. The merger was consummated through the merger of the Company's
        wholly-owned subsidiary, LBC MergerSub, Inc., a Nevada corporation, with
        and
        into BHM, with BHM being the surviving corporation. The merger was intended
        to
        be a "tax-free" reorganization pursuant to the provisions of Section 368(a)
        of
        the Internal Revenue Code of 1986, as amended. As a result of the merger,
        BHM is
        a wholly-owned subsidiary of the Company.
BHM
        was
        formed on January 16, 2003 and operated as a privately held Delaware limited
        liability company under the name Berman Center LLC until June 2005, when
        it
        reorganized into corporate form under the name The Berman Center, Inc. in
        accordance with the provisions of the Delaware Limited Liability Company
        Act. On
        June 20, 2005, BHM changed its name to Berman Health and Media,
        Inc.
RECENT
        DEVELOPMENTS
Immediately
        after the merger, the Company reincorporated from the State of Georgia to
        the
        State of Delaware and changed its name to Berman Center, Inc.
Following
        the merger, shares of the Company's common stock are quoted under the symbol
"LBCT" on the Pink Sheets.
In
        May,
        2005, BHM began offering for sale through Hunter World Markets, Inc. on a
"best
        efforts" basis units of its common stock and warrants (the "Units"), each
        consisting of (i) two shares of its common stock, (ii) one three-year warrant
        exercisable into one share of its common stock at an exercise price of $1.05
        and
        (iii) one three year warrant exercisable into one share of its common stock
        at
        an exercise price of $1.575. The price per Unit was $1.05. In June 2005,
        2,952,381 Units were sold to certain of the selling security
        holders.
3
THE
        COMPANY'S BUSINESS AND OPERATIONS
The
        Company is a multimedia enterprise specializing in women's health, active across
        the domains of radio, television, and print media, including books, magazines
        and newspapers. Dr. Laura Berman, a premier name in women's sexual health and a
        leading researcher in the field, has created a multi-faceted platform for
        reaching out to consumers in a variety of settings, including the entertainment
        medium, product sales, medical services and online subscription opportunities
        that the Company's management team is in the process of capitalizing on. The
        Company has already accomplished producing its own radio show, a weekly column
        in the Chicago Sun-Times, and a monthly column in Ladies Home Journal and
        ad-hoc
        contributions to the USA Today opinion page. Dr. Berman is also a correspondent
        for Good Morning America on ABC, the star of her own reality television show,
        A
        More Perfect Union, for which the pilot episode is currently being produced
        for
        Showtime Network, the host of a recent Lifetime Network television special
        entitled Secrets of the Sexually Satisfied Woman and Co-host of Berman &
        Berman on Discovery Health Channel.
Dr.
        Berman is the author of three books: For Women Only: A Revolutionary Guide
        to
        Overcoming Sexual Dysfunction and Reclaiming Your Sex Life, a New York Times
        Best Seller; The Secrets of the Sexually Satisfied Woman, recently released;
        and
        Passion Prescription, which she recently completed and has been accepted
        by her
        publisher, Hyperion. Dr. Berman is a source for a wide range of media outlets.
        Dr. Berman has appeared in a wide variety of magazines, newspapers, television
        and radio shows, including Oprah, CNN, Good Morning America, New York Times,
        Wall Street Journal, Fortune Magazine, Cosmopolitan, Marie Claire, Fitness,
        Redbook, and Ladies Home Journal. She also is featured in publications and
        television programs internationally.
The
        Company's Chicago location is housed in a state-of-the-art facility, comprising
        approximately 10,000 square feet and located in downtown Chicago near
        Northwestern Memorial Hospital and the Magnificent Mile shopping district.
        Soothing colors and a clean, spa-like decor make the clinic an inviting facility
        for on-camera use. The clinic also serves as a tranquil, therapeutic
        environment, where the clinical staff works to improve every patient's quality
        of life, health and relationships. The clinic is a full-scale hormonal
        management clinic, counseling center and sexual function testing center,
        marketed through a diversified media platform based on Dr. Berman's reputation
        as a female sexual health and relationship expert.
As
        a well
        known and trusted brand in women's sexual health and well-being, the Company is
        set to capitalize on a market opportunity by helping women genuinely improve
        their lives and enhance their relationships. The Company's treatment for female
        sexual dysfunction employs a holistic approach. The clinic offers a full
        line of
        services to women with sexual dysfunction, addressing the physical,
        psychological and relationship challenges that they may face. Recent technology
        measures sexual response, genital blood flow and pelvic floor health. A
        psychosexual evaluation assesses emotional health, relationship quality and
        patient history. Based on each woman's needs, individualized treatment plans may
        include: medical intervention (e.g., hormone therapy, topical creams, Viagra),
        individual or couples therapy, and educational recommendations.
In
        keeping with a holistic philosophy, the Company's Menopause Program consists of
        four components of menopause management: customized bio-identical hormone
        therapy, nutrition, talk therapy and fitness. Yoga and Pilates promote pelvic
        floor fitness and teach stress management. In addition to medical and physical
        interventions, a psychosexual evaluation assesses current symptoms, relationship
        quality and patient history, with individual or couples therapy prescribed
        as
        needed to complement medical treatment.
Many
        women have been thrown into crisis with few options for easing the symptoms
        of
        menopause. The Company believes that there is a lack of information around
        the
        effectiveness of commercial hormone therapy and the factual risks it poses
        to
        women's health. The Company fills this need by offering an alternative known as
        bio-identical hormone therapy. Bio-identical hormones are identical to the
        body's own chemistry and are customized to each woman's needs. Unlike commercial
        hormone therapy, bio-identical hormones are constantly regulated to deliver
        the
        lowest level of hormones required to relieve symptoms. The use of bio-identical
        hormone therapy is a natural treatment for menopausal complications, including
        hot flashes, sleep loss, female sexual dysfunction, mood swings, depression
        and
        night sweats.
4
The
        Company does not accept insurance, as the majority of the services provided
        are
        not covered by third party reimbursement. The Company's practitioners do not
        accept Medicare or Medicaid, thereby avoiding a wide variety of legal and
        financial risks. Collection of fees for services occurs at the time of
        visit.
Omnimedia
        Platform
Dr.
        Berman has a substantial media platform in television, radio and print,
        including newspapers, magazines and books. Access to so many channels for
        public
        awareness represents a substantial market opportunity. The Company believes
        that
        book publishing and radio syndication opportunities represent promising
        alternative revenue sources, and more importantly contribute to patient
        awareness and marketing. The Company believes that electronic dating, home
        videos and product and literature sales represent other promising revenue
        streams. Healthcare delivery will be both supplemented and supported by all
        other lines of business.
A
        coordinated media strategy, including television, radio, print media, research,
        and authorship continues to bring existence of the clinic to the attention
        of
        many women. Clinical trials and the latest research are conducted at the
        clinic
        in a for-profit setting. Dr. Berman has relationships with companies that
        manufacture drugs in the sexual dysfunction realm and has been a lead
        investigator on key research in this arena, including that study on the
        effectiveness of Viagra in women. Both drug manufacturing and consumer products
        companies have engaged the Company and Dr. Berman in an effort to develop
        research in the arena of female sexual health.
Books
        and Publishing
Dr.
        Berman is a best-selling author. Her first book, For Women Only: A Revolutionary
        Guide to Reclaiming Your Sex Life achieved a top ranking on the New York
        Times
        Best Seller's List when it was released in 2001, and is now available in
        paperback. Her second book, Secrets of the Sexually Satisfied Woman, was
        just
        promoted in a nationwide multimedia tour. A third book, Passion Prescription,
        has been completed and is slated for release in January 2006.
The
        future advances and back-end profits on any books written in conjunction
        with
        Dr. Berman will become the Company's property as part of Dr. Berman's employment
        contract with the Company. A variety of other books are planned, with each
        book
        targeting a different facet of female health and relationships. In addition
        to
        being a profit center, the Company believes that publishing will keep Dr.
        Berman
        and the Company's name connected to its patients in an intimate way and will
        serve as a substantial marketing vehicle in addition to enhancing the clinic's
        medical reputation.
Newspaper
        and Magazine Columns
Dr.
        Berman currently publishes columns in the Chicago Sun-Times, USA Today and
        Ladies Home Journal. The columns provide consistent, highly credible and
        free
        branding across its targeted consumer base. Dr. Berman's weekly Chicago
        Sun-Times column, "The Language of Love," takes an entertaining, light-hearted
        approach to relationships and sex. The 500-word column is meant to be
        insightful, but accessible for the Monday-morning commuter to read. The column
        is also featured online at www.suntimes.com, with an archive of columns from
        the
        previous six weeks. A monthly Ladies Home Journal column presents Dr. Berman's
        answers to real women's questions. The advice format delivers useful information
        that every woman can relate to for herself or her relationship. USA Today
        is the
        nation's largest circulated newspaper. Dr. Berman contributes to the
        publication's opinion page, "The Forum," with cutting-edge, new-thinking opinion
        pieces that engage Dr. Berman in timely discussions of sexual health
        controversies.
Reality
        Shows
Dr.
        Berman recently finished taping the pilot episode for A More Perfect Union,
        a
        show designed to help couples have a better relationship and sex life. The
        show
        follows three couples through an intensive week of relationship therapy designed
        to enhance their intimacy, connection and communication. Cameras capture
        the
        couples in sessions with Dr. Berman at the clinic, on therapeutic dates around
        the city of Chicago and at home completing intimate "homework" assignments each
        night. The audience watches couples go from conflict to resolution and increased
        intimacy, for a reality show that is truly uplifting.
5
The
        reality television show is being supported by a high caliber team of
        professionals, including the critically acclaimed Gantz Brothers—directors and
        producers of HBO's Taxicab Confessions. The Emmy award-winning Gantz Brothers
        are well known for capturing provocative and highly entertaining real-life
        situations through their discrete, hidden cameras. The show is expected to
        air
        in the fourth quarter of 2005 and will provide substantial visibility to
        the
        Company and Dr. Berman.
Radio
Dr.
        Berman hosts a weekly syndicated radio show that currently airs across the
        United States. Through a call-in format, The Dr. Laura Berman Show explores
        women's sexual health and relationship issues, with caller-selected topics. The
        two-hour show features Dr. Berman speaking one-on-one with women about topical
        concerns and questions, as well as celebrity guest experts who specialize
        in the
        field. Dr. Berman's radio show began in the third quarter of 2004 in Chicago,
        the nation's third largest market on WCKG-FM. The show has since expanded to 7
        markets including the largest satellite radio network. The show is currently
        produced and distributed by Matrix Media in Chicago, Illinois, which also
        houses
        the recording studio.
Internet
        Initiatives
The
        Company sees an opportunity to create and grow an online dating business
        built
        around Dr. Berman and her intellectual property. The site would be designed
        to
        be of special interest to women looking for more than the usual unsatisfying
        online dating experience. The Company plans to design and implement the Berman
        dating site in cooperation with an existing online dating partner so that
        the
        Company will not have to recreate the technological foundation for the business.
        The site will provide a self-help environment to improve self image and
        confidence of its members, featuring books and articles written by Dr. Berman
        designed to improve quality of life. Online diagnosis templates and treatment
        suggestions for problems such as depression, anxiety, and other common
        conditions that prevent people from being successful in their romantic lives.
From
        dating coaching to medical and mental health referrals, the Company's dating
        site will be a source of information and networking to form new relationships
        and to build self-confidence. Online group discussions will create a community
        support group for members and contribute to social interaction on the site.
Psychological
        profiling created by Dr. Berman will be used as the "secret formula" for making
        the successful match at the Company's site. Profiles will be used to find
        compatible dating partners and to weed out undesirable candidates. The site
        will
        communicate the message that Dr. Berman has clinical experience with thousands
        of women and knows what they want romantically. That knowledge will be
        incorporated into the selection process to assure the best possible match.
        Products and books by Dr. Berman will be available online and members will
        receive a continuous stream of new information in their particular areas
        of
        interest or concern. The self-help component will be targeted at both men
        and
        women and will focus on mental health, relationships, and sexuality.
Online
        dating is a growing segment of the e-commerce market and has relatively low
        barriers to entry. Online dating websites often struggle with generating
        enough
        paying women users. Dr. Berman's online dating site will attempt to remedy that
        problem through trusted name-recognition among women and with an emphasis
        on
        relationships, instead of casual dating. Attracting a large female base will
        help drive male participation. The Company's dating site will also be a venue
        for sales of related products in addition to Dr. Berman's intellectual property.
The
        Company currently operates its website at www.bermancenter.com, and provide
        the
        content for the website of the Network for Excellence in Women's Sexual Health
        ("NEWSHE") at www.newshe.com. Dr. Berman is the director of NEWSHE, which is
        owned by Dr. Berman and several other colleagues. It is anticipated that
        the
        Company will purchase the site in the near future.
6
Instructional
        DVDs
The
        Company intends to produce a new series of DVDs hosted by Dr. Berman. The
        Endless Passion Series will help women and couples deal with issues of intimacy
        and sexuality throughout their lifetime. From cutting-edge medical and
        therapeutic advice to usable tips for the bedroom, viewers will receive
        life-changing information in an easy-to-use format. Hallmarks of the series
        will
        include:
·
Situations,
                  featuring real women and couples sharing important
                  issues;
·
Storylines
                  men and women can identify with, presented at an exciting
                  pace;
·
Usable,
                  practical advice from Dr. Berman;
                  and
·
Medical
                  and anatomical information displayed using state-of-the-art technology
                  and
                  graphics.
Key
        Business Relationships
Key
        partners involved in the Company and Dr. Berman's media career include her book
        agency International Creative Management (ICM), her talent agency, United
        Talent
        Agency (UTA) and her public relations firm, Caffeine Communications. In
        addition, Northwestern Memorial Hospital and Meeting Achievements produces
        the
        Company's continuing medical education courses.
Corporate
        Relationships
Corporate
        interests fund the Company's research studies, underwrite publishing projects
        and pay for satellite media tours to announce research, thereby getting the
        Company's name in the press. The Company has turned corporate funded research
        into books and other publications, enhancing the Company's reputation as a
        thought leader in menopause management and female sexual medicine. The Company's
        corporate partners seek to advertise across the Dr. Laura Berman media platform
        to tap into her loyal, robust clientele and fan-base to sell their products
        and
        services. The omnimedia concept is successfully integrated into the Company's
        advertising sales channels and business model.
Dr.
        Berman has relationships with several major drug company and a variety of
        consumer product companies, including Bayer, Johnson & Johnson, Vivus,
        Quality Life Pharmaceutical, Pharmacia, Next Med, Eli Lily, Pfizer, Dechuttes
        Medical, Nastech, Inspire Pharmaceutical, Proctor & Gamble, C.B. Fleet,
        Summer's Eve, Drugstore.com, and Seasonale.
The
        Clinic Process
During
        many years in full-time academic medicine and research, Dr. Berman had a
        range
        of unique opportunities to explore and develop a multi-disciplinary plan
        for
        treating sexual dysfunction in women. The Company's clinical model is a
        culmination of the past five years of Dr. Berman's work and is an expression of
        what she has learned is the ideal method of treating female sexual dysfunction.
        An extensive initial work-up of each new patient delivers a complete diagnosis
        from up to five different clinicians utilizing trusted therapeutic techniques
        and the latest medical devices. A beautiful, spa-like environment is designed
        to
        be comfortable and inviting.
For
        each
        patient visiting the clinic, the experience is far removed from the typical
        doctor's visit. Upon entering the clinic, the patient is directed to the waiting
        room or the Resource Library, whichever she prefers, as she completes her
        questionnaires, which are sent home to each patient prior to her visit. The
        questionnaires cover demographics, but are also part of the assessment for
        psychological factors impacting on sexual function; a depression inventory,
        a
        general stress scale, a sexual function scale, a relationship satisfaction
        scale, a body-image scale, and a genital self-image scale. The therapist
        is able
        to review the questionnaires before interviewing the patient. This way she
        can
        be aware of any important red flags that may need to be attended to during
        the
        evaluation.
Psychosexual
        Evaluation
Every
        new
        patient who comes to the clinic undergoes a Psychosexual Evaluation with
        a
        trained sex therapist. Upon reviewing the patient's questionnaires, the
        therapist meets with the patient to get a sense of the scope and duration
        of the
        problems the patient has been having, how symptoms started, how she is managing
        individually and how her relationships have been impacted. A sex history
        is
        taken including the patient's sexual development, sexual message received while
        growing up and history of abuse or trauma. The evaluation helps to engage
        the
        patient in the process, by reviewing the goals of the treatment, what is
        entailed in the medical evaluation and testing, and plans for moving forward.
7
Whenever
        possible, women are encouraged to bring their partners to the initial
        evaluation. The couples section of the history is intended to get a sense
        of the
        couple's dynamics and the impact of the sexual issues on the relationship.
        Another goal of the couples' piece is to educate the partner about the patient's
        symptoms, and validate the impact the sexual dysfunction is having on him
        and
        the relationship.
When
        the
        evaluation is finished, the therapist has gained a sense of what the goals
        of
        psychosexual treatment should be (individual therapy, couples therapy, group
        therapy, supportive therapy or some combination thereof) and reviews them
        with
        the patient. While the patient is preparing for the next step of her evaluation,
        the medical exam, the therapist confers with the medical professional and
        patient concierge about the salient psychosexual issues and what her treatment
        goals are for the patient and her partner.
Medical
        Evaluation
Every
        new
        patient receives a medical evaluation to rule out physiological causes for
        her
        sexual function complaints. After the psychosexual history, patients meet
        with
        the medical practitioner for a medical and surgical history, which considers
        past surgeries, pelvic injuries, medical conditions, and medications which
        may
        be negatively impacting on her sexual function. A simple physical is performed
        including heart, lungs, ENT, breast exam, thyroid, and a brief genital exam
        to
        check for vulovaginal health, prolapse and evaluate Kegel muscle strength.
        Blood
        pressure is taken and the patient's blood is drawn for a homopanal panel, which
        measures thyroid function, free and total Testosterone, and lipids, SHBG,
        ALT
        (liver function), which are the primary hormonal components of sexual function
        in women.
For
        female sexual dysfunction patients, there are two additional testing instruments
        designed to assess the physical sexual response. Women who come to the clinic
        for menopause management do not undergo these exams. The first is a blood
        flow
        measurement, using a Duplex Doppler Ultrasound (or laser sonogram), to measure
        blood flow to the genitals and surrounding tissue. The findings enable the
        medical practitioner to identify any occlusions that may be blocking the
        blood
        flow to the genital area and to determine if overall blood flow is adequate
        for
        baseline sexual function. The second test determines sensory thresholds to
        identify any nerve sensory impairment in the genital area, with a specialized
        device designed for this purpose. The medical practitioner is able to
        immediately review the results with the patient. While the patient is changing,
        the medical practitioner briefs the patient concierge on her findings and
        recommendations, with the exception of hormone recommendations which await
        test
        results.
Menopause
        management patients are administered a second measure of hormone levels,
        known
        as a saliva test. While most physicians routinely perform blood tests only,
        many
        experts agree that saliva testing may be more precise, since it offers a
        measure
        of bioavailable hormone levels, or the hormones that are not bound up in
        a
        woman's cells and therefore available for her body to use. Sexual function, in
        particular, depends on this. Patients are sent home with a saliva-test kit,
        which they are instructed to complete during the appropriate time in their
        cycle. The results are used in conjunction with blood test results to determine
        the best bio-identical hormone regimen, customized to the patient's individual
        needs. Women complete a second at-home saliva test six to eight weeks after
        beginning their prescribed hormone regimen to reassess levels. A follow-up
        visit
        with the nurse practitioner, either at the Center or over the phone, checks
        in
        with the patient about hormone levels and any other symptom changes, modifying
        the prescription if necessary.
Once
        she
        is finished, the patient meets with the patient concierge who discusses the
        current prescribed treatment plan. Treatment plans typically include ongoing
        individual, couples or group therapy as well as medical intervention, including
        medications, yoga and physical therapy. The patient concierge also provides
        tailored educational and sexual device/lubricant recommendations, depending
        on
        the woman's needs. Necessary referrals are made for ongoing gynecological care,
        gynecological surgery, urologic ongoing care, and male sexual function
        evaluations. The patient is given the opportunity to have all of her questions
        answered and leaves with an individualized plan for addressing her sexual
        concerns.
8
The
        Treatments
Medical
        Treatment
Medications:
Depending
        on the diagnosis, medications that may be used to treat women include
        bio-identical hormones, vasodilators (like Viagra and others which enhance
        blood
        flow and therefore lubrication and sensation in women), SSRI's or SNRI's,
        sensation enhancing creams and gels, and lubricants.
Fitness:
Assessment
        and exercises for pelvic floor strength, as well as relaxation and stress
        management techniques. The Company's fitness expert will lead a series of
        classes focused on relaxation and flexibility, weight training for muscle
        maintenance, and exercises for pelvic floor restoration and
        strengthening.
Nutrition:
Review
        of
        overall exercise regimen and brief food diary, tailored, gradual diet
        recommendations that hit key health points.
Psychological
        Treatment
:
If
        it is
        determined during the evaluation that the patient is suffering from an emotional
        issue (e.g. depression, anxiety, phobias) or has a history of sexual, emotional
        or physical abuse or trauma, she will undergo individual therapy on an ongoing
        basis with a trained psychotherapist. This may include general individual
        therapy, sex therapy or some combination of the two. General therapy is used
        when the patient is struggling with depression or anxiety or when a past
        history
        or trauma issue outside the relationship needs to be addressed. Sex therapy
        is
        used in combination with general therapy in cases of sexual abuse or trauma,
        and
        alone in cases of women who need education, guidance, or resolution of
        inhibitions that negatively impact on their sexual function. Sex therapy
        is all
        talk therapy, but behavioral in nature in that the emotional resistance to
        sexual activity is addressed and the patient is given homework assignments
        specific to her sexual complaints and psychological issues. The duration
        of
        therapy can range from several months to several years, depending on the
        nature
        of the issues being treated. Individual therapy will often be combined with
        couples therapy.
Couples
        Therapy
:
If
        it is
        determined during the evaluation that there are some couples issues contributing
        to the sexual function complaint (e.g. hostility, lack of communication,
        even an
        emotional rift as a result of struggling with medically induced sexual
        problems), the patient will undergo couples therapy with her partner. This
        may
        include general couples therapy, couples sex therapy, or some combination
        of the
        two. General couples therapy would address communication styles, conflict
        resolution, or crisis intervention (when the couple is about to separate
        or is
        going through a crisis like an affair or serious illness). Couples sex therapy
        is typically combined with general couples therapy and consists of talk therapy
        where education and guidance are provided. Resistances to sexual activity
        are
        addressed and homework is given to the couple to enhance sexual receptivity,
        openness, communication and response. The duration of therapy can range from
        several months to several years, depending on the nature of the issues being
        treated.
Group
        Therapies and Programs
:
Group
        therapies are very effective treatment and allow for billing up to twelve
        patients while utilizing just one therapist. In addition to four private
        talk
        therapy rooms, the clinic has two large group therapy rooms, a yoga room
        and a
        conference room, all of which can accommodate large patient groups in therapy.
        Directing treatment towards a group therapy model will help drive profit
        and
        build a sense of community with the Company's patients. Studies on the
        effectiveness of group therapy have demonstrated a positive effect on women's
        ability to cope with a medical condition, knowledge about that condition,
        stress
        levels associated with that condition, family functioning, quality of life,
        emotional growth, and even longevity.
9
Research
        and Clinical Trials
The
        Company's clinic strives to be a research center and think-tank for advancing
        the science of female sexuality and sexual dysfunction. Dr. Berman was one
        of
        the lead principle investigators in the first multi-center clinical trial,
        which
        found Viagra to be effective in women with arousal disorder. She consulted
        with
        Pfizer to design the protocol, and also spearheaded the team to train the
        sex
        therapists to carry out the eligibility screening at over twenty different
        sites. The findings of the study, published in the Journal of Sex and Marital
        Therapy, reported a statistically significant improvement in arousal,
        lubrication, sexual satisfaction and ease and facility for reaching orgasm
        with
        Viagra as compared to placebo. Ongoing clinical and scientific research projects
        continue to be carried out at the clinic many of which will be sponsored
        by
        different companies, with whom Dr. Berman consults or has relationships.
The
        Company generates revenue and brand equity by conducting selective research
        studies. The Company believes that studies add credence to Dr. Berman's
        professional reputation within the medical community and generate substantial
        media exposure. Interesting findings from the studies are tapped for television
        and radio appearances, as well as assorted newspaper and magazine features,
        with
        credit to Dr. Berman and/or the Company.
It
        should
        be noted that all research is done based on real science and driven by patient
        needs. The commercial aspect of the financing and promotion of the research
        is
        not allowed to compromise the integrity or accuracy of the results. All research
        carried out at the clinic (both clinical trials and general research) is
        approved by a centralized internal review board (IRB) office for the protection
        of human subjects. Use of a centralized IRB to review and approve all research
        ensures its legitimacy and provides outside supervision of adherence to ethical
        guidelines.
Continuing
        Medical Education Courses
In
        September 2004, the Company hosted "Women's Sexual Health State-of-the-Art
        Series" through Northwestern Memorial Hospital's Continuing Medical Education
        Office. This meeting was targeted to a national group of health care
        professionals (nurses, therapists, physicians, etc) who were interested in,
        or
        currently treating female sexual function complaints. The course emphasized
        cutting-edge information on the evaluation, diagnosis, and treatment of female
        sexual function complaints, including pelvic pain, perimenopause and menopause,
        sexual challenges of special populations of women, and couples issues. The
        two
        day multi-disciplinary course will be held annually in Chicago, with the
        next
        scheduled for September 17-18, 2005. The Company has expanded the series
        to
        include meetings in Los Angeles in April of 2006 and in New York City in
        June of
        2006.
The
        Company benefits greatly from its role as host of this educational series
        on
        many levels. First, it heightens exposure of the clinic among other
        professionals in the field. Secondly, it promotes the professional reputation
        of
        the clinic in the Northwestern Memorial community and well beyond by acting
        as a
        voice of authority in the science and cutting-edge research of female sexual
        dysfunction.
As
        the
        Company's representatives, the Company believes the clinical staff will continue
        to grow its professional reputation by attending all major meetings in the
        field
        to present the Company's research and network with other professionals. These
        include the American Association of Sex Educators and Therapists (AASECT),
        the
        Society for the Scientific Study of Sexuality (SSSS), the American Psychological
        Association (APA), the International Society for the Study of Women's Sexual
        Health (ISSWSH), the American Urologic Association (AUA), and the American
        College of Obstetrics and Gynecologists (ACOG).
Growth
        Strategies
With
        respect to growth inside an individual market or city, the Company plans
        to move
        beyond one large downtown center, to open satellite centers in various cities
        and suburbs. The satellite centers would be wholly owned and managed by the
        existing team. The plan is to have talk therapy and physical therapy comprise
        the bulk of the revenue at the satellites. In Illinois, the most likely first
        satellite to open would be in the Northern suburbs such as Barrington and
        the
        Western suburbs such as Naperville. Other major cities are also under
        consideration for the first satellite locations such as New York and San
        Francisco. International locations in Europe and Asia will be considered
        for
        years three and four of the roll-out strategy.
10
Competition
Illinois
1.
        Loyola
        University Sexual Dysfunction Center, Chicago, IL
This
        program is organized under the direction of Loyola's Department of Psychiatry
        and Behavioral Neurosciences and is directed by Dr. Domeena Renshaw, a sex
        therapist. Married couples and individuals with sexual problems are provided
        seven weeks of counseling, while single patients may receive individual therapy
        or instead attend a 6-week all female or all male counseling group. Patients
        are
        typically seen by a group of trainees who are under supervision by Dr. Renshaw
        and her staff. The short term therapy model does not allow for treating couples
        or individuals with significant emotional or relationship issues. There is
        no
        medical evaluation or ongoing treatment for sexual problems.
2.
        The
        Family Institute, Northwestern University, Evanston, IL
The
        Midwest's largest center devoted to couples and family therapy, the professional
        staff is comprised of 30 therapists plus support staff. Thirteen of those
        therapists specialize in couples therapy, one, Bill Pinsoff, the president
        of
        the Institute, has a specialty in sex therapy. The rest of the staff specializes
        in anxiety disorders, family relationships, adolescents, eating disorders,
        etc.
        The center reports that they see more than 2,400 families, couples or
        individuals each year. While this program is well established and offers
        comprehensive psychological services, they only report one therapist who
        has a
        clinical interest in sex therapy and they offer no medical evaluation or
        treatment for sexual function complaints
3.
        Other
        Sex Therapists in the Chicago area (sex therapy only)
Richard
        Carroll, PhD, Northwestern Memorial Hospital, Department of
        Psychiatry
Shirley
        Barron, PhD, University of Chicago Hospital, Department of
        Psychiatry
Karen
        Donhey, PhD, private practice, Chicago
Other
        States
1.
        The
        Sexual Medicine Program, Department of Urology, Well Medical College of Cornell
        University, New York Presbyterian Hospital, New York, NY
This
        program is headed by Dr. John Mulhall, an urologist. The program has been
        primarily focused on male sexual dysfunction, since that is Dr. Mulhall's area
        of expertise. He also runs the Sexual Medicine Research Laboratory, which
        carries out basic science research, primarily focused in male sexual
        dysfunction. Beyond two support staff (including a clinical trial coordinator
        and a practice manager), Dr. Michael Perelman is the sex therapist affiliated
        with the Sexual Medicine Program. He is the Co-Director of the Human Sexuality
        Program, Payne Whitney Clinic of the New York Presbyterian Hospital. Dr.
        Perelman does offer ongoing therapy as part of a training program for psychiatry
        residents at the hospital. Medical testing and treatment of women primarily
        consists of hormonal testing and management.
2.
        New
        York Institute of Human Sexuality, Columbia University, Department of Urology,
        New York, NY
The
        institute includes two Centers: the New York Center for Men's Sexual Health
        and
        the New York Center for Women's Sexual Health. The Women's Sexual Health program
        is run by Dr. Ridwan Shapsigh, a male urologist and Dr. Hilda Hutcherson,
        a
        female OBGYN. They consult with a team of sex therapists to whom they refer
        patients. While there is no sex therapist on staff, they do employ a director
        of
        research, nurse, clinical research coordinator and medical assistant. The
        primary ongoing medical evaluation and treatment they do is hormonal
        management.
3.
        Department of Psychiatry and Behavioral Sciences Reproductive and Sexual
        Medicine Clinic, University of Washington School of Medicine, Seattle,
        WA
This
        program is run by Dr. Julia Heiman, a sex therapist, and a team of trainees.
        She
        refers patients to outside medical experts when needed. The clinic is mostly
        focused on training researchers and therapists in treating different kinds
        of
        individual and couples sexual challenges. They are not targeted specifically
        at
        women, and see both male and female patients. While they collaborate with
        other
        medical departments, the program does not provide ongoing medical evaluation
        or
        treatment.
11
4.
        Center
        for Sexual and Marital Health, Robert Wood Johnson University Medical Group,
        Piscataway, NJ
This
        program is run by Dr. Sandra Leiblum, a sex therapist. She provides ongoing
        couples and individual treatment for men and women. Patients may be seen
        in a
        variety of treatment formats, including individual, couple, and group sessions.
        Workshop programs are offered at times to enhance and extend individual therapy.
        Referrals are made to medical professionals for medical evaluation and treatment
        when deemed necessary. This program is primarily focused on training for
        therapists and researchers.
5.
        Masters and Johnson Institute, St. Louis, MO
This
        program was started in the 1950's and is presently directed by Dr. Mark
        Schwartz, a sex therapist. He and four other therapists focus their treatment
        on
        couples counseling, eating disorders, sexual compulsion and recovering from
        sexual trauma. They provide no medical evaluation or ongoing medical
        treatment.
6.
        Program in Human Sexuality, Department of Family Practice and Community Health,
        University of Minnesota Medical School, Minneapolis, MN
This
        program, directed by Dr. Eli Coleman, sex therapist, is run by a team sex
        therapy supervisors and trainees under his supervision. The program is focused
        on post-doctoral training and provides ongoing sex therapy for a range of
        male
        and female disorders from cross-dressing to HIV. No ongoing medical evaluation
        or care is provided.
7.
        Kinsey
        Institute Sexual Health Clinic, Indiana University Health Center, Bloomington,
        IN
This
        program is run by Dr. John Bancroft, a sex therapist. The institute provides
        sex
        therapy to individuals and couples. Some medical evaluation and treatment
        is
        carried out on male patients with erectile dysfunction, but none is available
        for female patients.
8.
        Connecticut Surgical Group, Hartford, CT
This
        program is run by nurse practitioner, Jill Siskind. The only other employee
        is a
        female ultrasound technician. Ms. Siskind also refers to a consulting sex
        therapist when needed. The program is folded into a general Urology Clinic
        with
        no dedicated space, so all other patients at the center are male with general
        urologic conditions. Ms. Siskind does offer medical/psychological evaluations
        for women with sexual problems and some ongoing medical treatment.
9.
        Institute for Sexual Medicine, Boston Medical Center, Boston, MA
Perhaps
        the largest facility in the field today, the Institute for Sexual Medicine
        is a
        combination research and treatment facility. A five million dollar grant
        from
        Bayer Corporation to fund basic science primarily in the realm of erectile
        dysfunction helped to create the laboratory for sexual medicine research
        at the
        Institute. Located within the Boston Medical Center, the institute is currently
        staffed with thirteen employees including two doctors, one sex therapist,
        one
        nurse, one ultrasound tech, two secretaries and one center coordinator; the
        lab
        is staffed with one director, one assistant director, two technicians and
        one
        administrator. The Institute is run by Dr. Irwin Goldstein, a former colleague
        of Dr. Berman's. Dr. Berman founded the Women's Sexual Health Clinic at Boston
        Medical Center, in 1998, which was folded into the Institute after her
        departure. While the Institute has had its successes, they have principally
        been
        in the realm of male sexual dysfunction. The program is designed to service
        male
        sexual problems primarily. The entire medical staff, including the sex therapist
        and the nurse, are men. The center has treated about 1,350 women since 1998
        versus 14,000 men.
Legal
        Environment
Because
        of its involvement in Medicare and Medicaid, the Federal Government regulates
        much of the medical field. The Company's physicians do not accept Medicare and
        Medicaid and should therefore not fall within the Medicare/Medicade Fraud
        Act or
        its penalties.
Physicians
        are required under a series of laws, called the Stark Laws, to function in
        a
        regulated fashion regarding referrals. The physicians practice inside the
        clinic
        but conduct their own practice for all legal purposes. Legally segmenting
        these
        two portions of the business allows the remainder of the practitioners to
        function outside of the purview of these restrictions. Masters of social
        work
        and masters of marital and family therapy are not restricted under either
        the
        Stark Laws or the Medicare and Medicaid rules in the context of their practice
        at the clinic.
12
Although
        the Company is structured as a corporation, physicians practice inside separate
        companies known as professional corporations (PC's). The PC's have management
        agreements with the Company and rental or lease agreements regarding the
        space
        they occupy. The PC's themselves are owned by the various physicians who
        practice at the clinic.
Technology
Technology
        plays a significant role in the operations and finances of the business.
        The
        Company has created a significant internet presence, including a website
        complete with on-line scheduling capabilities, credit card payment abilities
        and
        important health information for women. A patient is able to log onto the
        Company's website (www.bermancenter.com) and schedule her appointment
        on-the-spot. The Company believes it is important for a patient to be able
        to
        schedule in privacy and not have to speak to anyone if she chooses. At the
        moment, only initial assessments and Bio Identical HT appointments can be
        scheduled on-line.
The
        clinic is equipped with a practice-management software package that has full
        capabilities for patient scheduling, patient registration and physician
        documentation, along with statistical data for clinical research. Other
        technology features include on-line scheduling via the Company's website, a
        complete network and audio and visual components for training and therapeutic
        sessions. Scanning of doctors' written notes incorporates the notes into the
        electronic files.
Access
        to
        computers is a key component of the clinic. Every group room and the yoga
        room
        is equipped with a drop-down screen connected to the Company's computer network
        so that presentations and videos can be shown as part of the group sessions
        or
        for other kinds of presentations. Each exam and treatment room has a computer
        in
        it, networked to the Company's system, so that specialists can have easy access
        to patient files, notes and scheduling. A computer is also housed in the
        Wellness Resource Library so that patients can have access to the internet
        and
        utilize the computer for research purposes.
While
        the
        group rooms and yoga room all have their own stereo systems, the common areas
        and hallways are equipped with speakers so that soothing music can be heard
        throughout the center from a central stereo, enhancing the spa-like
        atmosphere.
Dr.
        Berman already has several online venues for content including www.NEWSHE.com,
        Discovery Health Channel website at www.discovery.com/health, The Oprah Winfrey
        Show web site www.oprah.com, www.suntimes.com, www.abcnews/gma.com,
        www.lifetimetv.com and www.drugstore.com.
Intellectual
        Property
Dr.
        Berman's current and past media projects including books, television, and radio
        are all owned by the Company through a multi year employment agreement with
        Dr.
        Berman. Under the employment agreement, Dr. Berman has agreed to contribute
        the
        proceeds from all intellectual property to the Company (other than proceeds
        derived from honorarium fees and speaking engagements).
Berman
        Center Intimate Accessories Line products manufactured by California Exotics
        have not been patented nor are they patentable in management's opinion.
Employees
        and Labor Relations
At
        March
        31, 2005 the Company had 7 full-time employees and two part-time
        employees.
Legislative
        Actions and Potential New Accounting Pronouncements
In
        order
        to comply with the newly adopted Sarbanes-Oxley Act of 2002 and proposed
        accounting changes by the Securities and Exchange Commission, the Company
        may be
        required to increase its internal controls, hire additional personnel and
        additional outside legal, accounting and advisory services, all of which
        could
        cause the Company's general and administrative costs to increase. Proposed
        changes in the accounting rules, including legislative and other proposals
        to
        account for employee stock options as compensation expense among others,
        could
        increase the expenses that the Company report under Generally Accepted
        Accounting Practices and could adversely affect its operating
        results.
13
Property
The
        Company's executive offices are located at 211 East Ontario, Suite 800, Chicago,
        Illinois 60611. Base rent is $23 per square foot in year one or $172,500
        in the
        first year. The rent escalates at 3% per year, except in year 3 when the
        extra
        square footage becomes chargeable.
All
        of
        the Company's facilities are in good repair. The Company believes that its
        existing facilities will be adequate to meet its needs for the foreseeable
        future. Should the Company need additional space, the Company believes it
        will
        be able to secure additional space at commercially reasonable
        rates.
Dividend
        Policy
The
        Company, to its knowledge, has never paid cash dividends on its common stock.
        The Company intends to keep future earnings if any, to finance the expansion
        of
        its business. The Company does not anticipate that any cash dividends will
        be
        paid in the foreseeable future.
Legal
        Proceedings
Neither
        the Company, its subsidiary nor any of their respective properties are a
        party
        to any pending legal proceeding.
RISK
        FACTORS
Any
        investment in the Company's common stock involves a high degree of risk. You
        should carefully consider the risks described below and all of the information
        contained in this Current Report on Form 8-K before deciding whether to purchase
        the Company's common stock. The Company's business, financial condition or
        results of operations could be materially adversely affected by these risks
        if
        any of them actually occur. The trading price of the Company's common stock
        could decline due to any of these risks, and you may lose all or part of
        your
        investment. Some of these factors have affected the Company's financial
        condition and operating results in the past or are currently affecting the
        Company. This Current Report on Form 8-K also contains forward-looking
        statements that involve risks and uncertainties. The Company's actual results
        could differ materially from those anticipated in these forward-looking
        statements as a result of certain factors, including the risks faced by the
        Company described below and elsewhere in this Current Report on Form
        8-K.
The
        Company has a history of losses and the Company anticipates that its expenses
        will dramatically increase as the Company execute its business plan. Thus,
        the
        Company will likely experience continued losses in the near future, may not
        be
        able to continue as a going concern, and may not ever achieve or maintain
        profitability.
Berman
        Health and Media, Inc. has incurred significant losses since its inception
        in
        January 2003. In addition, the Company anticipates that its expenses will
        dramatically increase as the Company prepare to leverage its media platform
        to
        exploit opportunities in the female sexual medicine industry. If its revenues
        grow more slowly than anticipated or if its operating expenses exceed
        expectations, the Company will continue to operate at a loss, may not be
        able to
        continue as a going concern and may not be able to achieve or consistently
        maintain profitability.
In
        addition, the Company's independent registered public accounting firm has added
        an explanatory paragraph to their audit opinion issued in connection with
        the
        financial statements for the year ended December 31, 2004 relative to the
        Company's ability to continue as a going concern. The Company's ability to
        obtain additional funding in year 2005 and thereafter will determine its
        ability
        to continue as a going concern. The Company's financial statements do not
        include any adjustments that might result from the outcome of this uncertainty.
        The Company's financial statements and related notes are not attached to this
        Current Report on Form 8-K but will be filed by an amendment to this Current
        Report no more than 71 days from the date that this Current Report is required
        to be filed.
14
The
        Company's historical financial information does not reflect its current primary
        business strategy for achieving revenue growth.
Historically,
        Berman Health and Media, Inc. has derived the substantial majority of its
        revenues from clinic patients. The Company anticipates that media and product
        revenue from licensing its products and services that the Company plan to
        develop will constitute an increasing portion of its revenues. Accordingly,
        historical financial information should not be construed as the basis from
        which
        to judge the Company's future operations.
The
        Company is dependent upon one person, Dr. Laura Berman, for achieving revenue
        growth. The loss of services of Dr. Berman would result in significant financial
        loss for the Company.
The
        Company is uniquely dependent on one individual, Dr. Laura Berman, for its
        reputation and branding. Dr. Berman's talents, efforts, personality and
        leadership have been, and continue to be critical to the Company's success. The
        diminution or loss of services of Dr. Berman, and any negative market or
        industry perception arising from that diminution or loss, could have a material
        adverse effect on the Company's business and the various business lines
        functioning at the Company.
The
        Company has an exclusive, royalty-free license from Dr. Berman with respect
        to
        her name, likeness, image and voice for use in its business. If the Company
        was
        to terminate Dr. Berman's employment without cause or if Dr. Berman were to
        terminate her employment for good reason, the license would cease to be
        exclusive. In addition, under this circumstance, Dr. Berman could compete
        against the Company and the Company would have to pay Dr. Berman royalties
        on
        revenues relating to her name. If Dr. Berman were to compete with the Company
        or
        if the Company was to lose its right to use this intellectual property, its
        business would be materially adversely affected.
In
        addition, the Company's business would be adversely affected if Dr. Berman's
        public image or reputation were tarnished. Dr. Berman, as well as her name,
        her
        image and the intellectual property rights relating to these, are integral
        to
        the Company's marketing efforts and form a significant portion of its brand
        name. The Company's success and the value of its brand depend in large part on
        the reputation of Dr. Berman.
The
        market for female sexual health products and services is at an early stage
        and
        if market demand does not develop, the Company may not achieve or sustain
        revenue growth.
The
        market for
the
        Company's
products
        and services is at an early stage. If the Company and its licensees are unable
        to develop demand for its products and services, the Company may not achieve
        or
        sustain revenue growth. The Company cannot accurately predict the growth
        of the
        markets for these products and services, the timing of product and service
        introductions or the timing of acceptance of them.
Even
        if
the
        Company's
and its
        licensees' products and services are ultimately adopted, widespread adoption may
        take a long time to occur. The timing and amount of royalties and product
        sales
        that the Company receives will depend on whether the products and services
        marketed achieve widespread adoption, and, if so, how rapidly that adoption
        occurs. The Company expects to pursue extensive and expensive marketing and
        sales efforts to educate prospective institutional customers about the uses
        and
        benefits of the Company's products and services.
If
        these
        institutions are unwilling to budget for such products and services or reduce
        their budgets as a result of an economic slowdown, cost-containment pressures
        or
        other factors, the Company may not be able to achieve widespread adoption
        of its
        products and services at a satisfactory rate. If the Company is unable to
        increase sales of its products and services,
the
        Company's
business,
        financial condition and results of operations may be adversely
        affected.
If
        the Company fails to protect and enforce its intellectual property rights
        or if
        licensors who license intellectual property rights to the Company fails to
        protect and enforce such licensors' intellectual property rights, the Company's
        ability to license its technologies and to generate revenues would be
        impaired.
The
        Company's business depends in part on generating revenues by licensing its
        intellectual property and by selling products and services that incorporate
        its
        specialty.
The
        Company might be unable to recruit or retain necessary personnel, which could
        slow the development and deployment of its products and
        services.
15
The
        Company's future success and ability to sustain its revenue growth depend upon
        the continued service of the Company's executive officers, and other key
        personnel and upon hiring additional key personnel and staff for the clinic.
        Competition for these individuals is intense and the Company may not be able
        to
        attract, assimilate or retain additional highly qualified personnel in the
        future. The loss of services of the Company's executive officers and other key
        personnel and the failure to successfully attract, assimilate or retain
        sufficiently qualified personnel could harm the business and its ability
        to
        achieve or maintain profitability.
The
        Company projects rapid growth and change in its business and the Company's
        failure to successfully manage this change could harm its
        business.
Any
        future periods of rapid growth may place significant strains on the Company's
        managerial, financial and other resources. The rate of any future expansion,
        in
        combination with the Company's diverse products and services, may demand an
        unusually high level of managerial effectiveness in anticipating, planning,
        coordinating and meeting the Company's operational needs as well as the needs of
        its licensees.
Product
        liability claims could expose the Company to losses and could be time-consuming
        and costly to defend.
Claims
        that consumer products have flaws or other defects that lead to personal
        or
        other injury are possible, in particular for the Berman Center Intimate
        Accessories Collection. Berman Health and Media, Inc. has not experienced
        any
        product liability claims to date. Although the Company seeks to limit its
        exposure to product liability claims by using certain provisions in licensing
        agreements and through the Company's manufacturer's, California Exotic
        Novelties, liability insurance, existing or future laws or unfavorable judicial
        decisions could limit or invalidate such provisions. If products sold by
        the
        Company or by its licensees cause personal injury, financial loss or other
        injury to the Company's or its licensees' customers, the customers, or the
        Company's licensees, may seek damages or other recovery from the Company. These
        claims would be time-consuming and expensive to defend, distracting to
        management and could result in substantial damages to the Company. In addition,
        the assertion of these claims, even if unsuccessful, could damage the Company's
        reputation or that of its licensees or their products. This damage could
        limit
        the market for the Company's products and services and harm its business,
        financial condition and results of operations.
The
        Company may become involved in costly and time consuming litigation over
        malpractice or violation of Stark Laws.
Hormone
        therapy has demonstrated risks, as found by the recent cessation of the Women's
        Health Initiative launched by the National Institutes of Health in the United
        States. While full information and medical disclaimers are signed by all
        patients of the Company's clinic, there is a risk that hormone therapy will be
        perceived to have some link to other illness and would generate potential
        liability for the clinic and its practitioners.
The
        medical portion of the Company's affiliated businesses is subject to the Stark
        Laws in the United States regarding revenues and referrals. There is the
        possibility that the Company will at some time be ruled in violation of the
        Stark Laws, which would have an adverse economic impact on the
        Company.
The
        medical portion of the business must be separated into a separate entity
        known
        as a professional corporation. We must maintain an appropriate arms-length
        relationship with various professional corporations that function around
        the
        Company (i.e., the practice). The Company is not licensed to practice medicine,
        but may be subject to review by the licensing boards in the state of Illinois.
        While the majority of clinic revenue is not derived from medical services,
        there
        is a risk that the Company's relationships with medical professionals will be
        viewed as improperly maintained and the Company is in violation of the corporate
        medicine doctrine.
Malpractice
        insurance maintained at the professional corporation level or the clinician
        level may not successfully cover the corporate entity and though the Company
        itself is not engaged in the practice of corporate medicine, it may be named
        in
        any potential malpractice suits, as well.
16
The
        Company and its officers, directors and employees have limited experience
        in
        marketing, licensing and selling the products and services offered by the
        Company's
clinic,
        have no experience in the online dating industry and may not be able to operate
        the business effectively.
The
        Company and its officers, directors and employees have limited experience
        in
        marketing, licensing and selling the products and services offered by the
        Company's clinic, in operating and managing the clinic and in developing
        products and services related to the female sexual medicine industry. In
        addition, offering and developing an online dating site is a substantial
        departure from the Company's current business of offering product development
        and services related to the female sexual medicine industry. The Company
        and its
        officers, directors and employees have no experience in developing, producing,
        pricing, marketing, selling or distributing online dating products and services
        and the Company will rely on its ability to employ persons that have such
        experience to carry out its business strategy with respect to developing
        an
        online dating site and the other areas of its business. Because of its
        inexperience in these areas, the Company may not be effective in achieving
        success that may otherwise be attainable by more experience.
Legislative
        actions, higher insurance cost and potential new accounting pronouncements
        are
        likely to impact the Company's future financial position and results of
        operations.
There
        may
        potentially be new accounting pronouncements or regulatory rulings which
        will
        have an impact on the Company's future financial position and results of
        operations. The Sarbanes-Oxley Act of 2002 and other rule changes as well
        as
        proposed legislative initiatives following the Enron bankruptcy are likely
        to
        increase general and administrative costs. In addition, insurers are likely
        to
        increase premiums as a result of high claims rates, which the Company expects
        will increase its premiums for insurance policies. Further, proposed initiatives
        are expected to result in changes in certain accounting rules, including
        legislative and other proposals to account for employee stock options as
        a
        compensation expense. These and other potential changes could materially
        increase the expenses the Company report under generally accepted accounting
        principles, and adversely affect its operating results.
Changes
        in general economic conditions, especially interest rates and business cycles,
        may significantly affect the Company's income and
        revenues.
Any
        substantial deterioration in general political or economic conditions,
        particularly in the United States, may adversely affect the Company's financial
        performance. The terrorist attacks that took place in the United States on
        September 11, 2001, along with the U.S. military campaign against terrorism
        in
        Iraq, Afghanistan and elsewhere and continued violence in the Middle East
        have
        created many economic and political uncertainties, some of which may materially
        harm demand for the Company's products and services and the Company's business
        and revenues. The long-term effects of these events on the Company's industry,
        the market for its products and the U.S. economy as a whole are uncertain.
        The
        consequences of any additional terrorist attacks, or any expanded-armed
        conflicts are unpredictable, and the Company may not be able to foresee these
        events that could have an adverse effect on its markets or
        business.
The
        Company may become involved in costly and time consuming litigation over
        misused
        or misinterpreted advice.
A
        portion
        of the Company's media, from radio to television to books and columns, focuses
        on giving advice in the therapeutic and medical realms. In delivering such
        advice, there is risk it will be improperly followed or improperly blamed
        for
        damage that a listener, viewer or reader may have suffered, and consequently
        the
        Company could be subject to lawsuits on that basis. The negative publicity
        resulting from filing of any such lawsuit could adversely affect the Company's
        marketing efforts. In addition, it is possible that the Company's financial
        resources would be insufficient to satisfy the alleged claims in any
        lawsuit.
The
        Company may become involved in costly and time consuming litigation over
        clinical trials conducted at the Berman Center.
Clinical
        trials conducted at the Berman Center carry with them inherent risk because
        of
        the experimentation on human subjects. While independent review board (IRB)
        approvals will be achieved before any clinical trial testing is done, the
        risk
        of litigation and malpractice claims is present.
17
If
        the Company's television shows fail to maintain a sufficient audience and if
        adverse trends develop in the television production business generally, that
        business could become unprofitable.
The
        Company's television production business generates a growing portion of its
        revenues, but is subject to a number of uncertainties. Television production
        is
        a speculative business because revenues and income derived from television
        depend primarily on the continued acceptance of that programming from the
        public, which is difficult to predict. Public acceptance of particular
        programming is dependent upon, among other things, the content and quality
        of
        that programming, the strength of stations on which that programming is
        broadcast, promotion of that programming, the quality and acceptance of
        competing television programming and other sources of entertainment and
        information.
While
        Showtime Networks has approved the pilot for A More Perfect Union, it is
        not
        obliged to continue with the first season as a series. Showtime Networks
        is in
        the process of reviewing the pilot in order to determine if it will proceed
        with
        a 10-episode series. If Showtime Networks accepts the series, it will be
        under
        prearranged terms negotiated at the time of the pilot agreement.
In
        addition, television revenues and income may also be affected by a number
        of
        factors beyond the Company's control. These factors include a general decline in
        broadcast television viewers, pricing pressure in the television advertising
        industry, strength of the stations on which the Company's programming is
        broadcast, general economic conditions, availability of other forms of
        entertainment and leisure time activities and other factors. All of these
        factors may quickly change and these factors cannot be predicted with certainty.
        Accordingly, if these changes were to occur, the revenues the Company generates
        and anticipates generating from television programming could
        decline.
The
        Company is reliant upon outside production companies to produce a successful
        television product, and the Company may not be able to control the final
        output.
The
        nature of the entertainment business is such that the Company, to the extent
        that the Company is not in charge of production, is not necessarily in charge
        of
        the quality of the final output. Success of the entertainment product is
        contingent upon working with producers who provide quality services. The
        Company
        is reliant upon different production companies to produce a successful product;
        and those production companies may not succeed on any given project. Due
        to
        factors beyond the Company's control, some of the media projects may not succeed
        in producing long-term revenue.
Future
        acquisitions might dilute stockholder value, divert management attention
        or
        cause integration problems.
As
        part
        of its business strategy, the Company might in the future acquire, businesses
        or
        intellectual property that the Company feel could complement its business,
        enhance its products and services or increase its intellectual property
        portfolio. If the Company consummate acquisitions through an exchange of
        the
        Company's securities, its stockholders could suffer significant dilution.
        Acquisitions could create risks for the Company, including:
·
unanticipated
                  costs associated with the
                  acquisitions;
·
use
                  of substantial portions of the Company's available cash to consummate the
                  acquisitions;
·
diversion
                  of management's attention from other business concerns;
                  and
·
difficulties
                  in assimilation of acquired personnel or
                  operations.
Any
        future acquisition, even if successfully completed, might not generate any
        additional revenue or provide any benefit to the Company's
        business.
The
        Company anticipates raising additional capital in the
        future.
The
        Company anticipates raising additional funds through public or private
        financing, strategic relationships or other arrangements in the near future
        to
        carry out its business strategy. The Company cannot be certain that any
        financing will be available on acceptable terms, or at all, and the Company's
        failure to raise capital when needed could limit its ability to expand its
        business. Additional equity financing may be dilutive to the holders of the
        Company's common stock, and debt financing, if available, may involve
        restrictive covenants. Moreover, strategic relationships, if necessary to
        raise
        additional funds, may require that the Company relinquish valuable
        rights.
18
The
        Company's executive officers, directors and major stockholders have significant
        control over the Company, which may lead to conflicts with other stockholders
        over corporate governance matters.
The
        Company's current directors, officers and more than 10% stockholders, as a
        group, own approximately 49.53% of the Company's outstanding common stock.
        Acting together, these stockholders would be able to significantly influence
        all
        matters that the Company's stockholders vote upon, including the election of
        directors, approvals of acquisitions and financing and other
        transactions.
If
        the Company fails to maintain effective internal controls over financial
        reporting, the price of its common stock may be adversely affected.
The
        Company is required to establish and maintain appropriate internal controls
        over
        financial reporting. Failure to establish those controls, or any failure
        of
        those controls once established, could adversely impact the Company's
        disclosures regarding its business, financial condition or results of
        operations. In addition, management's assessment of internal controls over
        financial reporting at such time may identify weaknesses and conditions that
        need to be addressed in the Company's internal controls over financial reporting
        or other matters that may raise concerns for you. Any actual or perceived
        weaknesses and conditions that need to be addressed in the Company's internal
        controls over financial reporting, disclosure of management's assessment
        of its
        internal controls over financial reporting or disclosure of its public
        accounting firm's attestation to or report on management's assessment of
        its
        internal controls over financial reporting may have an adverse impact on
        the
        price of the Company's common stock.
The
        Company may not be able to achieve the benefits the Company expects to result
        from the merger.
There
        can
        be no assurance that any of the anticipated benefits of the recent merger
        of the
        Company and Berman Health and Media, Inc. will be realized. In addition,
        the
        attention and effort devoted to consummating and achieving the benefits of
        the
        merger could significantly divert management's attention from other important
        issues, which could materially and adversely affect the Company's operating
        results or stock price in the future.
Standards
        for compliance with Section 404 of the Sarbanes-Oxley Act of 2002 are uncertain,
        and if the Company fails to comply in a timely manner, its business could
        be
        harmed and its stock price could decline.
Rules
        adopted by the SEC pursuant to Section 404 of the Sarbanes-Oxley Act of 2002
        require annual assessment of a company's internal control over financial
        reporting, and attestation of its assessment by the company's independent
        registered public accountants. On March 2, 2005, the SEC extended the compliance
        dates for non-accelerated filers, as defined by the SEC, by one year.
        Accordingly, the Company believes that this requirement will eventually be
        applicable to the Company. The standards that must be met for management
        to
        assess the internal control over financial reporting as effective are new
        and
        complex, and require significant documentation, testing and possible remediation
        to meet the detailed standards. The Company may encounter problems or delays
        in
        completing activities necessary to make an assessment of its internal control
        over financial reporting. In addition, the attestation process by its
        independent registered public accountants is new and the Company may encounter
        problems or delays in completing the implementation of any requested
        improvements and receiving an attestation of the Company's assessment by its
        independent registered public accountants. If the Company cannot assess its
        internal control over financial reporting as effective, or its independent
        registered public accountants are unable to provide an unqualified attestation
        report on such assessment, investor confidence and share value may be negatively
        impacted.
19
The
        Company has not voluntarily implemented various corporate governance measures,
        in the absence of which, stockholders may have more limited protections against
        interested director transactions, conflicts of interest and similar
        matters.
Recent
        Federal legislation, including the Sarbanes-Oxley Act of 2002, has resulted
        in
        the adoption of various corporate governance measures designed to promote
        the
        integrity of the corporate management and the securities markets. Some of
        these
        measures have been adopted in response to legal requirements. Others have
        been
        adopted by companies in response to the requirements of national securities
        exchanges, such as the NYSE or The Nasdaq Stock Market, on which their
        securities are listed. Among the corporate governance measures that are required
        under the rules of national securities exchanges and Nasdaq are those that
        address board of directors' independence, audit committee oversight, and the
        adoption of a code of ethics. The Company has not yet adopted any of these
        corporate governance measures and, since its securities are not yet listed
        on a
        national securities exchange or Nasdaq, the Company is not required to do
        so. It
        is possible that if the Company
was
to adopt
        some or all of these corporate governance measures, stockholders would benefit
        from somewhat greater assurances that internal corporate decisions were being
        made by disinterested directors and that policies had been implemented to
        define
        responsible conduct. For example, in the absence of audit, nominating and
        compensation committees comprised of at least a majority of independent
        directors, decisions concerning matters such as compensation packages to
        the
        Company's senior officers and recommendations for director nominees may be made
        by a majority of directors who have an interest in the outcome of the matters
        being decided. Prospective investors should bear in mind the Company's current
        lack of corporate governance measures in formulating their investment decisions.
There
        is no assurance of an established public trading market.
Although
        the Company's common stock is quoted in the Pink Sheets, a regular trading
        market for the securities may not be sustained in the future. Quotes for
        stocks
        listed on the Pink Sheets are not listed in the financial sections of newspapers
        and newspapers generally have very little coverage of stocks listed solely
        on
        the Pink Sheets. Accordingly, prices for and coverage of securities traded
        solely on the Pink Sheets may be difficult to obtain. In addition, stock
        traded
        solely on the Pink Sheets tend to have a limited number of market makers
        and a
        larger spread between the bid and ask prices than those listed on the NYSE,
        AMEX
        or NASQAQ exchanges. All of these factors may cause holders of the Company's
        common stock to be unable to resell their securities at or near their original
        offering price or at any price. Market prices for the Company's common stock
        will be influenced by a number of factors, including:
·
changes
                  in interest rates;
·
competitive
                  developments, including announcements by competitors of new products
                  or
                  services or significant contracts, acquisitions, strategic partnerships,
                  joint ventures or capital
                  commitments;
·
variations
                  in quarterly operating results;
·
changes
                  in financial estimates by securities
                  analysts;
·
the
                  depth and liquidity of the market for the Company's common
                  stock;
·
investor
                  perceptions of the Company after the merger with Berman Health
                  and Media,
                  Inc. and the women's sexual health industry generally;
                  and
·
general
                  economic and other national
                  conditions.
Provisions
        of the Company's certificate of incorporation and bylaws may delay or prevent a
        take-over which may not be in the best interests of the Company's
        stockholders.
Provisions
        of the Company's certificate of incorporation and bylaws may be deemed to have
        anti-takeover effects, and may delay, defer or prevent a takeover attempt.
        In
        addition, certain provisions of the Delaware General Corporation Law also
        may be
        deemed to have certain anti-takeover effects.
Shares
        eligible for future sale may adversely affect the market price of the Company's
        common stock, as the future sale of a substantial amount of its stock in
        the
        public marketplace could reduce the price of the Company's common stock.
20
Substantial
        sales of the Company's common stock in the public market, or the perception that
        such sales could occur, could result in the drop in the market price of its
        securities and make it more difficult for the Company to complete future
        equity
        financings on acceptable terms, if at all, by introducing a large number
        of
        sellers to the market. From time to time, certain of the Company's stockholders
        may be eligible to sell all or some of their shares of common stock by means
        of
        ordinary brokerage transactions in the open market pursuant to Rule 144,
        promulgated under the Securities Act of 1933, as amended ("Rule 144"), subject
        to certain limitations. In general, pursuant to Rule 144, a stockholder (or
        stockholders whose shares are aggregated) who has satisfied a one-year holding
        period may, under certain circumstances, sell within any three-month period
        a
        number of securities which does not exceed the greater of 1% of the then
        outstanding shares of common stock or the average weekly trading volume of
        the
        class during the four calendar weeks prior to such sale. Rule 144 also permits,
        under certain circumstances, the sale of securities, without any limitations,
        by
        a non-affiliate of the Company that has satisfied a two-year holding period.
        In
        addition, Berman Health and Media, Inc. recently completed a private placement,
        whereby they granted the investors in the private placement certain registration
        rights with respect to the shares of common stock underlying their securities.
        Those securities are included in the securities being offered in this
        prospectus. Hunter World Markets, Inc. may also, in its sole discretion,
        permit
        certain of the Company's current stockholders who are subject to contractual
        lock-up agreements to sell shares prior to the expiration of their lock-up
        agreements. The Company cannot estimate the number of shares of common stock
        that may actually be resold in the public market because this will depend
        on the
        market price for its common stock, the individual circumstances of the sellers
        and other factors. Any substantial sale of common stock pursuant to Rule
        144 or
        pursuant to any resale prospectus may have an adverse effect on the market
        price
        of the Company's securities.
The
        Company's common stock is considered to be a "penny
        stock."
The
        Company's common stock is considered to be a "penny stock" as it meets one or
        more of the following definitions. A stock is generally considered to be
        a penny
        stock if it meets one or more of the definitions in Rules 15g-2 through 15g-6
        promulgated under Section 15(g) of the Securities Exchange Act of 1934, as
        amended. These include but are not limited to the following: (i) the stock
        trades at a price less than $5.00 per share; (ii) it is NOT traded on a
        "recognized" national exchange; (iii) it is NOT quoted on the NASDAQ Stock
        Market, or even if so, has a price less than $5.00 per share; or (iv) is
        issued
        by a company with net tangible assets less than $2.0 million, if in business
        more than a continuous three years, or with average revenues of less than
        $6.0
        million for the past three years. The principal result or effect of being
        designated a "penny stock" is that securities broker-dealers cannot recommend
        the stock but must trade in it on an unsolicited basis.
Broker-dealer
        requirements may affect trading and liquidity.
Section
        15(g) of the Securities Exchange Act of 1934, as amended, and Rule 15g-2
        promulgated thereunder by the SEC require broker-dealers dealing in penny
        stocks
        to provide potential investors with a document disclosing the risks of penny
        stocks and to obtain a manually signed and dated written receipt of the document
        before effecting any transaction in a penny stock for the investor's
        account.
Potential
        investors in the Company's common stock are urged to obtain and read such
        disclosure carefully before purchasing any shares that are deemed to be "penny
        stock." Moreover, Rule 15g-9 requires broker-dealers in penny stocks to approve
        the account of any investor for transactions in such stocks before selling
        any
        penny stock to that investor. This procedure requires the broker-dealer to
        (i)
        obtain from the investor information concerning his or her financial situation,
        investment experience and investment objectives; (ii) reasonably determine,
        based on that information, that transactions in penny stocks are suitable
        for
        the investor and that the investor has sufficient knowledge and experience
        as to
        be reasonably capable of evaluating the risks of penny stock transactions;
        (iii)
        provide the investor with a written statement setting forth the basis on
        which
        the broker-dealer made the determination in (ii) above; and (iv) receive
        a
        signed and dated copy of such statement from the investor, confirming that
        it
        accurately reflects the investor's financial situation, investment experience
        and investment objectives. Compliance with these requirements may make it
        more
        difficult for holders of the Company's common stock to resell their shares to
        third parties or to otherwise dispose of them in the market or
        otherwise.
The
        Company does not foresee paying cash dividends in the foreseeable future.
The
        Company does not plan to pay cash dividends on its stock in the foreseeable
        future.
21
SPECIAL
        NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
        Current Report on Form 8-K contains certain forward-looking statements within
        the meaning of the Private Securities Litigation Reform Act of 1995, including
        the plans and objectives of management for the business, operations, and
        economic performance of the Company. These forward-looking statements generally
        can be identified by the context of the statements or the use of words such
        as
        the "Company" or its management "believes," "anticipates," "intends," "expects,"
        "plans" or words of similar meaning. Similarly, statements that describe
        the
        Company's future operating performance, financial results, plans, objectives,
        strategies, or goals are forward-looking statements. Although management
        believes that the assumptions underlying the forward-looking statements are
        reasonable, these assumptions and the forward-looking statements are subject
        to
        various factors, risks and uncertainties, many of which are beyond the Company's
        control. Accordingly, actual results could differ materially from those
        contemplated by the forward-looking statements.
These
        risks and uncertainties include, without limitation, those described under
"Risk
        Factors," above.
The
        assumptions used for purposes of the forward-looking statements specified
        in the
        following information represent estimates of future events and are subject
        to
        uncertainty as to possible changes in economic, legislative, industry, and
        other
        circumstances. As a result, the identification and interpretation of data
        and
        other information and their use in developing and selecting assumptions from
        and
        among reasonable alternatives require the exercise of judgment. To the extent
        that the assumed events do not occur, the outcome may vary substantially
        from
        anticipated or projected results, and, accordingly, no opinion is expressed
        on
        the achievability of those forward-looking statements. The Company cannot
        guarantee that any of the assumptions relating to the forward-looking statements
        specified in the following information are accurate, and the Company assumes
        no
        obligation to update any such forward-looking statements.
ITEM
        3.02
UNREGISTERED
        SALES OF EQUITY SECURITIES.
Berman
        Health and Media, Inc. recently closed a private placement offering of common
        stock and warrants (the "Units") each consisting of (i) two shares of common
        stock, (ii) one three-year warrant exercisable into one share of common stock
        at
        an exercise price of $1.05 and (iii) one three year warrant exercisable into
        one
        share of common stock at an exercise price of $1.57.
The
        Units
        were offered solely to persons who qualified as "accredited investors" within
        the meaning of Rule 501 of the Securities Act of 1933, as amended (the "Act"),
"Qualified Institutional Buyers" within the meaning of Rule 144A of the Act and
        to certain persons in offshore transactions in reliance on Regulation S of
        the
        Act.
The
        price
        per Unit was $1.05. In June 2005, Berman Health and Media, Inc. sold an
        aggregate of 2,952,381 Units and received $3,100,000 in gross proceeds from
        such
        sale. The securities were issued in reliance upon an exemption from registration
        with the SEC as provided by Section 4(2) of the Act and Regulation D and
        Regulation S promulgated thereunder and similar provisions under applicable
        state laws which provide exemptions from the securities registration provisions.
        The Company has agreed to assume the warrants issued by Berman Health and
        Media,
        Inc. in the private placement Each share of common stock underlying such
        warrants is now exercisable into 1.535999487 shares of the Company's common
        stock. These warrants are currently exercisable into an aggregate of 9,069,714
        shares of the Company's common stock.
In
        connection with the private placement, Berman Health and Media, Inc. entered
        into a placement agent agreement with Hunter World Markets, Inc. ("HWM"), the
        Company's former controlling stockholder and one of the Company's current
        stockholders, pursuant to which HWM offered for sale the Units on a "best
        efforts" basis. As consideration for HWM's services, the Company is now
        obligated to pay HWM or HWM is entitled to receive (i) a $310,000 commission
        on
        the sale of the Units, (ii) reimbursement of up $62,000 in non-accountable
        expenses and (iii) three year warrants exercisable into 906,971 shares of
        the
        Company's common stock. The warrants were issued in reliance upon an exemption
        from registration with the SEC as provided by Section 4(2) of the Act and
        Regulation D promulgated thereunder and similar provisions under applicable
        state law which provides exemptions from the securities registration provisions.
22
Prior
        to
        converting into corporate form, Berman Health and Media, Inc. sold in 2003,
        2004
        and 2005 an aggregate of 3,767,390 membership interests in Berman Center
        LLC,
        solely to persons who qualified as "accredited investors" within the meaning of
        Rule 501 of the Act. Berman Health and Media, Inc. received an aggregate
        of
        $2,966,223 in proceeds from such sales. These securities converted into
        19,730,504 shares of the Company's common stock upon consummation of the merger
        in June 2005. The securities were originally issued in reliance upon an
        exemption from registration with the SEC as provided by Section 4(2) of the
        Act
        and Regulation D promulgated thereunder and similar provisions under applicable
        state laws which provide exemptions from the securities registration
        provisions.
In
        addition, prior to converting into corporate form, Berman Health and Media,
        Inc.
        issued to certain "accredited investors" providing $400,000 in working capital
        to Berman Center LLC, three and a half year warrants exercisable into 117,315
        membership interests in the Berman Center LLC at an exercise price of
        $1.074034786. These warrants converted into warrants exercisable into 400,000
        shares of Berman Health and Media, Inc.'s common stock at an exercise price of
        $0.315 upon the reorganization of Berman Center LLC into corporate form.
        The
        Company agreed to assume these warrants in connection with the merger. Each
        share of common stock underlying such warrants is now exercisable into
        1.535999487 shares of the Company's common stock. These warrants are currently
        exerciseable into an aggregate of 614,400 shares of the Company's common stock.
        The securities were originally issued in reliance upon an exemption from
        registration with the SEC as provided by Section 4(2) of the Act and Regulation
        D promulgated thereunder and similar provisions under applicable state laws
        which provide exemptions from the securities registration
        provisions.
The
        forms
        of warrants issued by Berman Health and Media, Inc. to investors and to HWM
        are
        attached as Exhibits 4.1, 4.2 and 4.3 to this Current Report on Form
        8-K.
A
        copy of
        the Placement Agent Agreement between Berman Health and Media, Inc. and HWM
        is
        attached as Exhibit 10.2
ITEM
        4.01
CHANGES
        IN REGISTRANT'S CERTIFYING ACCOUNTANT.
The
        Company recently engaged Singer Lewak Greenbaum & Goldstein LLP as its
        independent registered public accountant to audit the consolidated financial
        statements of the Company for the year ended December 31, 2004.
ITEM
        5.01
CHANGES
        IN CONTROL OF REGISTRANT.
On
        June
        3, 2005, the Company, along with LBC MergerSub, Inc., a Nevada corporation
        and
        wholly owned subsidiary of the Company ("Merger Sub") and certain existing
        stockholders of the Company entered into an Agreement and Plan of Merger
        (the
"Merger Agreement") with Berman Health and Media, Inc., a privately held
        Delaware corporation, pursuant to which the Company would be acquired by
        BHM in
        a merger transaction wherein Merger Sub would merge with and into BHM, with
        BHM
        being the surviving corporation (the "Merger").
The
        Merger resulted in a change-of-control by BHM and its stockholders and the
        assumption of BHM's operations and liabilities. At the effective time of the
        Merger:
·
The
                  Company merged Merger Sub with and into BHM and the separate corporate
                  existence of Merger Sub has ceased;
                  and
·
The
                  Company had issued 19,730,504 shares of its restricted common stock,
                  and
                  314,230 options and 614,400 warrants to purchase additional shares
                  of its
                  restricted common stock to the stockholders of BHM in exchange
                  for 100% of
                  the issued and outstanding shares of common stock and warrants
                  to purchase
                  shares BHM's common stock.
Also
        in
        connection with the Merger, the Company has deposited 2,303,999 shares of
        its
        common stock into an escrow account, which shall cover any claims for breach
        of
        warranties, indemnities, covenants or undertakings contained in the Merger
        Agreement raised by BHM during the two-year period following the closing
        of the
        Merger.   In addition, the Company has reincorporated from
        the State
        of Georgia to the State of Delaware and has changed its corporate name from
"LB
        Center, Inc." to "Berman Center, Inc."
23
As
        a
        result of the Merger, the Company has become the parent corporation of BHM,
        and
        the stockholders of BHM have become shareholders of the Company. At the
        effectiveness of the Merger, the remaining shareholders of the Company owned
        approximately 13% of the issued and outstanding shares of the Company's common
        stock, based on 22,725,703 shares outstanding after the Merger.
Following
        the Merger, Samuel P. Chapman, Laura A.C. Berman, Allan Charles, Alger Chapman,
        Stuart Cornew, Jan Fawcett, Robert Goodmen and Michael Romano, each of whom
        are
        directors of BHM, were appointed to the Board of Directors of the Company.
        In
        addition, the Company appointed Samuel P. Chapman as the Company's Chairman and
        Chief Executive Officer, Laura A.C. Berman as President and William McDunn
        as
        Chief Financial Officer. Todd Ficeto resigned from all of his officer and
        director positions.
The
        transaction contemplated by the Merger Agreement is intended to be a "tax-free"
        incorporation pursuant to the provisions of Section 351 and 368(a)(i)(A)
        of the
        Internal Revenue Code of 1986, as amended.
The
        securities issued in connection with the Merger were issued in reliance upon
        an
        exemption from registration with the SEC as provided by Section 4(2) of the
        Act
        and Regulation D promulgated thereunder and similar provisions under applicable
        state law which provides exemptions from the securities registration provisions.
In
        May,
        2005, BHM began offering for sale units of its common stock and warrants
        (the
"Units"), each consisting of (i) two shares of its common stock, (ii) one
        three-year warrant exercisable into one share of its common stock at an exercise
        price of $1.05 and (iii) one three year warrant exercisable into one share
        of
        its common stock at an exercise price of $1.575. The price per Unit was $1.05.
        In June 2005, 2,952,381 Units were sold to certain of the selling security
        holders at an initial closing of the sale of the Units. In addition, BHM
        issued
        a warrant to purchase common stock to the placement agent in exchange for
        services provided to BHM in connection with the offering. After issuance
        of
        shares of common stock and warrants to purchase shares of common stock related
        to the private offering in June 2005, the Company had 31,795,415 shares of
        common stock outstanding and warrants and options to purchase 10,905,315
        shares
        of common stock.
SECURITY
        OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT PRIOR TO THE
        MERGER
The
        following table sets forth information regarding the beneficial ownership
        of the
        shares of the Company's common stock as of June 14, 2005, except as noted in the
        footnotes below, by:
·
Each
                  person who the Company knows to be the beneficial owner of 5% or
                  more of
                  its outstanding common stock;
·
Each
                  of the Company's executive officers;
·
Each
                  of the Company's directors; and
·
All
                  of the Company's executive officers and directors as a group.
Beneficial
        ownership is determined in accordance with the rules of the SEC. In computing
        the number of shares beneficially owned by a person and the percentage of
        ownership of that person, shares of common stock subject to options held
        by that
        person that are currently exercisable or become exercisable within 60 days
        of
        June 14, 2005 are deemed outstanding even if they have not actually been
        exercised. Those shares, however, are not deemed outstanding for the purpose
        of
        computing the percentage ownership of any other person. As of June 14, 2005,
        2,995,199 shares of the Company's common stock were issued and outstanding.
        Unless otherwise indicated in the table, the persons and entities named in
        the
        table have sole voting and sole investment power with respect to the shares
        set
        forth opposite the shareholder's name, subject to community property laws, where
        applicable. The address of each shareholder is listed in the table.
24
Name
                    and Address Of Beneficial Owner
Amount
                    Of
Beneficial
                    Ownership
Percent
                    Of
Class
Todd
                    Ficeto(1)
1,204,210
40.2
%
Corporate
                    Advisors Group
1,000,000
33.4
%
Petr
                    Ondrousek
400,000
13.4
%
Loman
                    International SA
350,000
11.7
%
All
                    directors and named executive officers as a group (one person)
1,204,210
40.2
%
__________
(1)
Includes
                  (i) 25,210 shares of the Company's common stock owned by Hunter World
                  Markets, Inc. ("HWM"), (ii) 1,159,000 shares of the Company's common stock
                  owned by Todd Ficeto, the President of Hunter World Markets, Inc.,
                  (v)
                  10,000 shares of the Company's common stock owned by Hunter Ficeto, a
                  family member of Todd Ficeto and (vi) 10,000 shares of the Company's
                  common stock owned by Natalia Ficeto, a family member of Todd
                  Ficeto.
SECURITY
        OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT FOLLOWING THE
        MERGER
The
        following table sets forth information with respect to the levels of beneficial
        ownership of the Company's common stock owned upon the effectiveness of the
        Merger by:
·
Each
                  person who the Company knows to be the beneficial owner of 5% or
                  more of
                  its outstanding common stock;
·
Each
                  of the Company's executive officers;
·
Each
                  of the Company's directors; and
·
All
                  of the Company's executive officers and directors as a group.
Prior
        to
        the Merger, the Company had 2,995,199 shares of its common stock issued and
        outstanding. After the Merger and the private offering taking place in June
        2005, as of June 16, 2005, the Company had 31,795,415 shares of its common
        stock
        issued and outstanding, in addition to options and warrants to purchase
        10,905,315 shares of the Company's common stock, which could result in up to
        42,700,730 shares of common stock outstanding.
Beneficial
        ownership is determined in accordance with the rules of the SEC. In computing
        the number of shares beneficially owned by a person and the percentage of
        ownership of that person, shares of common stock subject to options held
        by that
        person that are currently exercisable or become exercisable within 60 days
        of
        the closing date of the Merger, June 16, 2005, are deemed outstanding even
        if
        they have not actually been exercised. Those shares, however, are not deemed
        outstanding for the purpose of computing the percentage of any other person.
        Unless indicated otherwise, the address for each person named is c/o Berman
        Center, Inc., 211 East Ontario, Suite 800, Chicago, Illinois 60611.
25
Name
                      and Address of Beneficial Owner or Identity of Group
                      (1)
Amount
                      of
Beneficial
Ownership
Percent
                      of Class
Samuel
                      P. Chapman and Laura A. Berman (2)
5,747,419
18.08
%
Alger
                      Chapman
436,431
1.37
%
Stuart
                      Cornew
157,115
*
Robert
                      Goodman
157,115
*
Michael
                      Romano
157,115
*
Allan
                      Charles (3)
157,115
*
Jan
                      Fawcett (4)
157,115
*
Esarbee
                      Investment Group
1170
                      Peel
Montreal,
                      Quebec
Canada
                      H3B4P2
2,007,586
6.31
%
European
                      Capitalist Fund
c/o
                      Ogier Fiduciary Services (Cayman) Limited
P.O.
                      Box 1234GT Queensgate House
South
                      Church Street
George
                      Town
Grand
                      Cayman, Cayman Islands (5)
18,954,283
45.16
%
Hunter
                      World Markets, Inc.
9300
                      Wilshire Boulevard
Penthouse
                      Suite
Beverly
                      Hills, CA 90212 (6)
2,495,181
7.54
%
All
                      current directors and officers as a group
6,969,425
21.92
%
________________
*
        indicates less than 1%.
1.
The
                  persons named in this table have sole voting and investment power
                  with
                  respect to all shares of common stock listed. Beneficial ownership
                  also
                  includes that number of shares, which an individual has the right
                  to
                  acquire within 60 days (such as through the exercise of warrants
                  and
                  options) of the date of this Current Report on Form
                  8-K.
2.
Mr.
                  Samuel P. Chapman owns together with his wife Dr. Laura A. Berman
                  2,897,906 shares of the Company's common stock. Berman Center Holdings
                  LLC, which is owned by Mr. Samuel P. Chapman and Dr. Laura A. Berman,
                  owns
                  2,849,513 shares of the Company's common
                  stock.
3.
Represents
                  157,115 shares of Common Stock issuable upon exercise of stock
                  options
                  that are currently exercisable or exercisable within 60 days of
                  the date
                  of this Current Report on Form 8-K.
4.
Represents
                  157,115 shares of Common Stock issuable upon exercise of stock
                  options
                  that are currently exercisable or exercisable within 60 days of
                  the date
                  of this Current Report on Form 8-K.
5.
This
                  amount includes (i) 4,388,572 shares of the Company's common stock owned
                  by European Capitalist Fund ("ECP"), (ii) 4,388,569 shares of the
                  Company's common stock owned by Absolute Return Europe Fund, an affiliate
                  of ECP, (iii) 1,000,000 shares of the Company's common stock owned by
                  Corporate Advisors Group, an affiliate of ECP, (iv) warrants held
                  by
                  Corporate Advisors Group, an affiliate of ECP, currently exercisable
                  into
                  4,388,572 shares of common stock , (v) 400,000 shares of the Company's
                  common stock owned by Peter Ondrousek, an affiliate of ECP and
                  (vi)
                  warrants held by Peter Ondrousek, an affiliate of ECP, currently
                  exercisable into 4,388,570 shares of common
                  stock.
6.
This
                  amount includes (i) 25,210 shares of the Company's common stock owned by
                  Hunter World Markets, Inc. ("HWM"), (ii) warrants held by HWM currently
                  exercisable into 906,971 shares of the Company's common stock, (iii)
                  warrants held by The Hunter Fund Ltd., an affiliate of HWM, currently
                  exercisable into 384,000 shares of the Company's common stock, (iv)
                  1,159,000 shares of the Company's common stock owned by Todd Ficeto, the
                  President of Hunter World Markets, Inc., (v) 10,000 shares of the
                  Company's common stock owned by Hunter Ficeto, a family member of Todd
                  Ficeto and (vi) 10,000 shares of the Company's common stock owned by
                  Natalia Ficeto, a family member of Todd
                  Ficeto.
26
EXECUTIVE
        OFFICERS, DIRECTORS AND KEY EMPLOYEES
The
        following discussion sets forth information regarding the Company's executive
        officers and directors prior to and following the Merger.
Executive
        Officers and Directors Prior to the Merger
Name
Age
Year
                  First Appointed
Director
Positions
Todd
                  Ficeto
38
2004
Sole
                  Director, Chief Executive Officer, Chief Financial Officer and
                  Secretary
TODD
        FICETO
Todd
        M.
        Ficeto, age 38, became the Company's sole Director, Chief Executive Officer,
        Chief Financial Officer and Secretary in December 2004 in connection with
        his
        acquisition of the majority of the Company's common stock. Mr. Ficeto founded
        Hunter World Markets, Inc. in 1995 and is currently its President and Chairman.
        Mr. Ficeto has been in the investment banking industry since 1989.
Executive
        Officers and Directors Following the Merger
The
        following new executive officers of the Company will be elected annually
        by the
        Board of Directors and the following new members of the Company's Board of
        Directors will serve one year terms until the earlier of their death,
        resignation or removal by the Board of Directors:
Name
Age
Position
Year
                  First Appointed Executive Officer and/or Director of Berman Health
                  and
                  Media, Inc.
Samuel
                  P. Chapman
40
Chairman,
                  Chief Executive Officer
2003
Laura
                  A.C. Berman, LICSW, PHD.
36
President,
                  Director
2003
William
                  McDunn
48
Chief
                  Financial Officer
2004
Allan
                  Charles, M.D.
76
Director
2004
Alger
                  Chapman
73
Director
2004
Stuart
                  Cornew
47
Director
2004
Jan
                  Fawcett, M.D.
71
Director
2004
Robert
                  Goodman
49
Director
2004
Michael
                  Romano
50
Director
2004
27
The
          following information describes the business experience during the past
          five
          years of the executive officers and directors named above and certain other
          persons who are expected to make significant contributions to the business
          of
          the Company.
SAMUEL
        P.
        CHAPMAN
Samuel
        P.
        Chapman has been President of Parson Capital Corporation for the past thirteen
        years. Parson Capital is a venture capital boutique firm specializing in
        start-up companies. He is also a Director of HDO, Inc. During his career
        with
        Parson Capital he founded several companies playing the role of financier
        and Co
        Chairman of the Board along with his partner. One of the companies he co-founded
        was Parson Group LLC, a consulting firm that achieved the number one ranking
        by
        Inc. Magazine as the fastest growing private company in America in the year
        2000. Parson Group was sold the following year to a British Company for $55
        million cash.
Mr.
        Chapman formerly worked for both Dillon Read & Co., Inc. (now owned by UBS)
        and Lehman Brothers as a mergers and acquisitions specialist in New York.
        He is
        a member of the Board of Directors and former Cochairman of HDO Production
        a
        nationwide tent rental company. He is also a member of the
Young
Presidents Organization (YPO) and of the Economics Club of Chicago. He was
        formerly Co Chairman of Cantilever Technologies LLC, a software company he
        helped found, a past member of the Board of Trustees and the Executive Committee
        of the Rehabilitation Institute of Chicago, the top rehabilitation hospital
        in
        the world. Mr. Chapman graduated with a BA from Williams College in
        1986.
LAURA
        A.C. BERMAN, LICSW, PHD.
Dr.
        Laura
        Berman has been working as a sex educator and therapist for over fifteen
        years.
        After obtaining her Master's in Clinical Social Work and Doctorate in Health
        Education and Therapy (specializing in human sexuality) at New York University,
        she went on to complete a training fellowship in Sexual Therapy with the
        Department of Psychiatry at New York University Medical Center. Dr.
        Berman
        is currently an Assistant Clinical Professor of OBGYN and Psychiatry in the
        Feinberg School of Medicine at Northwestern University.
Dr.
        Berman is chair of the Women's Sexual Health State-Of-The-Art Series, an
        accredited program for the Council of Continuing Medical Education and currently
        serves on the foundation board of the Society for the Scientific Study of
        Sexuality (SSSS). She is also a member of the American Association of Sex
        Educators Counselors and Therapists (AASECT), the National Association of
        Social
        Workers (NASW), and is one of the few non-physician members of the American
        Urologic Association (AUA). She has been involved in numerous clinical sexual
        pharmacology trials, including acting as lead investigator for testing the
        effectiveness of Viagra on women's sexual complaints.
Dr.
        Berman has authored over 25 articles published in peer reviewed journals,
        and
        has been an invited speaker at over 45 venues in the United States and abroad.
        She recently wrote the chapter on female sexuality in Obstetrics and Gynecology,
        the definitive medical school text on the subject, edited by Dr. Sciarra,
        the
        past chair of the Department of OBGYN at Northwestern Memorial Hospital.
        Dr.
        Berman is also the recipient of many awards and honors, including Rising
        Star of
        the Year, (National Association of Women Business Owners, Los Angeles, February
        2002), Women of Action Award (Israel Cancer Research Fund, August 2002) and
        Women Who Make A Difference (Los Angeles Business Journal, August 2002).
In
        July,
        1998, Dr. Berman founded the Women's Sexual Health Center in the Department of
        Urology at Boston Medical Center. She was Co-Director there and established
        the
        first comprehensive protocol for treating female sexual dysfunction. In spring
        of 2000, she was recruited to UCLA Medical Center to start the Female Sexual
        Medicine Center, also within the department of Urology. She was Director
        of this
        Center until December 2002 when she moved to Chicago to join the clinical
        faculty of Northwestern Memorial Hospital and start Berman Center LLC.
28
ALLAN
        CHARLES, M.D.
Allan
        Charles is retired Chief of OBGYN at Michael Reese Hospital and Medical Center,
        retired Chairman of the Board of Directors for the Research and Education
        Foundation of the Michael Reese Medical Staff and presently Attending Physician
        in the Department of OBGYN at the same institution.
ALGER
        CHAPMAN
Alger
        Chapman is Director of the Cambridge Group. He is also the recently retired
        Chairman of ABN AMRO Financial Services, Inc. Prior to that Mr. Chapman was
        Chairman and CEO of the CBOE from 1986 to 1997. He is also on the Board of
        IArlington Capital, HDO Productions and Prime Insurance Holdings.
STUART
        CORNEW
Stuart
        Cornew is Managing Director of Pattern Associates which he founded ten years
        ago. Pattern is a database mining and consulting company specializing in
        finding
        answers in large data sets for the financial services industry. Currently
        he
        also serves on the board of Harlem Furniture and the advisory board of the
        Northwestern University Cancer Center.
JAN
        FAWCETT, M.D
.
Jan
        Fawcett is Professor at the University of New Mexico school of Medicine and
        the
        recently retired chairman of the Department of Psychiatry at
        Rush-Presbyterian-St. Luke's Medical Center.
ROBERT
        GOODMAN
Robert
        Goodman is Chairman and CEO, Asia/Pacific Hudson Highland Group. The Hudson
        Highland Group is a world wide staffing, outsourcing and executive search
        firm,
        headquartered in Chicago, IL.
MICHAEL
        ROMANO
Michael
        Romano is immediate past CEO of Romano Brothers Beverage Company. Romano
        Brothers is the leading wine and spirits distributor in the State of Illinois.
        Mr. Romano sold his Company to Southern Wine and Spirits in late
        2002.
WILLIAM
        MCDUNN
William
        McDunn has over 15 years of experience in Finance and Accounting. He was
        the
        Controller for Parson Group for five years, managing a staff of 15 and reporting
        directly to the CFO. Prior to Parson Consulting, he was Division Controller
        for
        Stone Container Corporation and responsible for oversight of accounting
        activities in his business unit. Mr. McDunn received a BA in Accounting and
        Liberal Arts from University of Illinois in Chicago in 1979. He received
        his CPA
        in 1981 and an MBA from Loyola University in 1989.
The
        following contains biographical information of other persons that are expected
        to make a significant contribution to the business of the
        Company.
KATHRYN
        L. MONKE
Kathryn
        L. Monke, age 38, has served as Manager, Center Operations of Berman Center
        since 2005. Ms. Monke has over eight years of experience with internal
        operations and systems. She was employed at Parson Group and most recently
        was a
        Senior Project Manager in internal operations and system implementation.
        Throughout her career she has gained experience in recruiting, interviewing,
        hiring, human resources, marketing, office management, training and
        documentation. Kathy received her Bachelor of Science in Marketing from Northern
        Illinois University.
29
DANA
        DEMAS
Dana
        Demas, age 29, is a writer for Berman Center since 2004. Ms. Demas is the
        author
        of two books: Women's Health and Wellness: An Illustrated Guide and Dog Breeds:
        An Illustrated Guide. She has a variety of writing and editing experience,
        including feature-length articles, newsletter and website content for clients
        from a diverse range of industries. Dana received her Bachelor of Arts in
        English and Psychology from the University of Vermont in 1998.
SUZANNE
        ROTH, MSN, APRN, BC
Suzanne
        Roth, age 46, has served as Nurse Practitioner of Berman Center since 2004.
        Ms.
        Roth was most recently employed at Men's Health Boston as a clinical study
        coordinator responsible for conducting/directing three clinical trials for
        patients with erectile dysfunction under the supervision of Abraham Morgentaler,
        M.D. She started her professional life at Massachusetts General Hospital
        as a
        Urological, Registered Professional Nurse. Suzanne received her Masters of
        Science in Nursing, Adult Primary Care and Women's Health, from Simmons College.
REBECCA
        JEFFERS
Rebecca
        Jeffers, age 32, has served as a Fitness Expert of Berman Center since 2004.
        Ms.
        Jeffers has been a yoga instructor for six years and is also certified in
        mat
        Pilates. She was trained at the N. U. Yoga Center in Chicago, IL, where she
        was
        exposed to all the different yoga systems, serials, and sequencing of poses.
        She
        has also had training in diet and nutrition and holistic health, and experience
        in developing and delivering specialized programs.
KERRIE
        GROW MCLEAN, PSYD, LPC
Kerrie
        Grow McLean, age 31, has served as Psychotherapist of Berman Center since
        2004.
        Ms. McLean received her undergraduate degree in Psychology from Michigan
        State
        University, and received her Masters and Doctoral degrees in Clinical Psychology
        from Chicago School of Professional Psychology.  She completed her
        training
        at Northwestern University's Counseling and Psychological Services where she was
        a predoctoral intern.  Dr. Grow McLean also trained as a sex therapist
        at
        the Loyola University Medical Center Sexual Dysfunction Clinic.  Her
        experience includes individual, couples and sex therapy.  Dr. Grow
        McLean
        specializes in treating women's health issues including sexual health and
        functioning, body image, genital image, and menopausal health.  She
        is
        currently a member of the American Association of Sex Educators Counselors
        and
        Therapists as well as the American Psychological Association.
MARTHA
        WEINFURTER, BSN
Martha
        Weinfurter, age 47, has served as Patient Concierge of Berman Center since
        2004.
        Ms. Weinfurter was most recently employed at Highland Park Hospital in Highland
        Park, IL as a Discharge Planner. She started her professional life at St.
        Luke's
        Hospital in Milwaukee, WI, where she worked on a medical unit and Kidney
        Dialysis. Martha then spent three years on a tertiary unit of Labor and Delivery
        at St. Joseph's Hospital in Milwaukee. She has experience as a community
        health
        nurse in the Washington D.C. area and received her Bachelor of Arts degree
        in
        Nursing from Marquette University in Milwaukee, Wisconsin.
Director
        Compensation
The
        Company does not have an established policy to provide compensation to members
        of its Board of Directors for their services in that capacity. Directors
        are
        reimbursed for reasonable out-of-pocket expenses incurred in connection with
        attendance at Board meetings. Each of the Company's outside directors (other
        than Jan Fawcett and Allan Charles) owns 157,115 shares of the Company's common
        stock.
30
In
        December 2004, Berman Center LLC granted options to two of its outside
        directors, Jan Fawcett and Allan Charles, exercisable into an aggregate of
        60,000 units of Berman Center, LLC. These options become exercisable into
        204,578 shares of common stock of BHM upon the reorganization of Berman Center
        LLC into BHM. The Company agreed to assume the options upon closing of the
        merger and these options are now exercisable into an aggregate of 314,230
        shares
        of the Company's common stock
The
        Board of Directors and Committees
The
        Company's Board of Directors does not maintain a separate audit, nominating or
        compensation committee. Functions customarily performed by such committees
        are
        performed by the Company's Board of Directors as a whole. The Company is not
        required to maintain such committees under the rules applicable to companies
        listed on the Pink Sheets. None of the Company's independent directors qualify
        as an "audit committee financial expert."
Family
        Relationships
Samuel
        P.
        Chapman is the husband of Dr. Laura A. Berman. In addition, Samuel P. Chapman
        is
        related to Alger Chapman.
EXECUTIVE
        COMPENSATION
Summary
        Compensation Table
The
        following table sets forth information concerning the compensation for fiscal
        year 2003 and 2004 of the Company's chief executive officer and one other
        executive officer whose annual salary and bonus exceeded $100,000 in such
        fiscal
        years (collectively, the "Named Executive Officers"). The amounts disclosed for
        fiscal year 2003 and 2004 for each of the Named Executive Officers relate
        to
        such person's compensation received as an executive officer of BHM.
Annual
                  Compensation
(1)
Name
                  and Principal Position
Year
Salary($)
Bonus($)
Samuel
                  P. Chapman - Chairman and Chief Executive Officer
2003
$
0
$
0
2004
$
110,769
$
0
Laura
                  A. C. Berman - President
2003
$
0
$
0
2004
$
110,769
$
0
(1)
The
        amounts disclosed exclude perquisites and other personal benefits, securities
        or
        property, which, for fiscal year 2003 and 2004 aggregated less than the lower
        of
        $50,000 or 10% of the total of annual salary and bonus reported for each
        Named
        Executive Officer.
Employment
        Agreements
The
        Company and Dr. Laura Berman have entered into a three-year employment
        agreement. Pursuant to such agreement, Dr. Berman will receive an annual
        salary
        of $200,000, provided that under certain circumstances the Company's Board of
        Directors may increase her salary. In addition, Dr. Berman has also agreed
        to
        contribute to the Company all income, revenue and other compensation received
        by
        Dr. Berman in connection with activities related to the business operations
        of
        the Company during her employment, including, without limitation, all revenue
        from media sources, talent agreements with television production companies
        or
        other media sources and authorship royalties. These items are the Company's sole
        property and may not be removed from the Company without approval of at least
        a
        majority in interest of the Company's stockholders and adequate compensation to
        the Company. The contribution of income and revenues describe above, however,
        does not include income, revenue and other compensation derived by Dr. Berman
        from honorarium fees and speaking engagements.
A
          copy of
          Dr. Berman's Employment Agreement is attached as Exhibit 10.1 to this Current
          Report on Form 8-K.
31
Certain
        Relationships and Related Transactions
None.
INDEMNIFICATION
        FOR SECURITIES ACT LIABILITIES
Under
        Section 145 of the General Corporation Law of the State of Delaware, the
        Company
        can indemnify its directors and officers against liabilities they may incur
        in
        such capacities, including liabilities under the Securities Act of 1933,
        as
        amended (the "Securities Act"). The Company's certificate of incorporation
        provides that, pursuant to Delaware law, its directors shall not be liable
        for
        monetary damages for breach of the directors' fiduciary duty of care to the
        Company and its stockholders. This provision in the certificate of incorporation
        does not eliminate the duty of care, and in appropriate circumstances equitable
        remedies such as injunctive or other forms of nonmonetary relief will remain
        available under Delaware law. In addition, each director will continue to
        be
        subject to liability for breach of the director's duty of loyalty to the Company
        or its stockholders, for acts or omissions not in good faith or involving
        intentional misconduct or knowing violations of the law, for actions leading
        to
        improper personal benefit to the director, and for payment of dividends or
        approval of stock repurchases or redemptions that are unlawful under Delaware
        law. The provision also does not affect a director's responsibilities under any
        other law, such as the federal securities laws or state or federal environmental
        laws.
The
        Company's bylaws provide for the indemnification of its directors to the fullest
        extent permitted by the Delaware General Corporation Law. The Company's bylaws
        further provide that its Board of Directors has sole discretion to indemnify
        its
        officers and other employees. The Company may limit the extent of such
        indemnification by individual contracts with its directors and executive
        officers, but have not done so. The Company is required to advance, prior
        to the
        final disposition of any proceeding, promptly on request, all expenses incurred
        by any director or executive officer in connection with that proceeding on
        receipt of an undertaking by or on behalf of that director or executive officer
        to repay those amounts if it should be determined ultimately that he or she
        is
        not entitled to be indemnified under the Company's bylaws or otherwise. The
        Company is not, however, required to advance any expenses in connection with
        any
        proceeding if a determination is reasonably and promptly made by its Board
        of
        Directors by a majority vote of a quorum of disinterested Board members that
        (a)
        the party seeking an advance acted in bad faith or deliberately breached
        his or
        her duty to the Company or its stockholders and (b) as a result of such actions
        by the party seeking an advance, it is more likely than not that it will
        ultimately be determined that such party is not entitled to indemnification
        pursuant to the applicable sections of its bylaws.
The
        Company has been advised that in the opinion of the Securities and Exchange
        Commission, insofar as indemnification for liabilities arising under the
        Securities Act may be permitted to the Company's directors, officers and
        controlling persons pursuant to the foregoing provisions, or otherwise, such
        indemnification is against public policy as expressed in the Securities Act
        and
        is therefore unenforceable. In the event a claim for indemnification against
        such liabilities (other than the Company's payment of expenses incurred or paid
        by its director, officer or controlling person in the successful defense
        of any
        action, suit or proceeding) is asserted by such director, officer or controlling
        person in connection with the securities being registered, the Company will,
        unless in the opinion of its counsel the matter has been settled by controlling
        precedent, submit to a court of appropriate jurisdiction the question of
        whether
        such indemnification by the Company is against public policy as expressed
        in the
        Securities Act and will be governed by the final adjudication of such
        issue.
POST
        MERGER DESCRIPTION OF CAPITAL STOCK
The
        Company is authorized to issue 100,000,000 shares of common stock, $0.001
        par
        value per share and 50,000,000 shares of preferred stock, $0.001 par value
        per
        share. The following description of the Company's capital stock does not purport
        to be complete and is governed by and qualified by the Company's certificate of
        incorporation and bylaws, which are included as exhibits to this Current
        Report
        on Form 8-K, forms a part, and by the provisions of applicable Delaware
        law.
32
Preferred
        Stock
As
        of
        June 16, 2005, the Company had no shares of preferred stock outstanding.
        The
        Board of Directors of the Company has the power to issue shares of preferred
        stock from time to time in one or more series. Pursuant to the Company's
        Certificate of Incorporation, the Board of Directors is authorized to fix
        or
        alter the designations, powers, preferences and other rights and restrictions
        of
        the preferred stock, including, without limitation, the dividend rights,
        conversion rights and voting rights of the preferred stock. The Company's Board
        of Directors can issue preferred stock without any stockholder approval with
        voting, conversion and other rights that could adversely affect the voting
        power
        and other rights of the holders of common stock. The issuance of preferred
        stock
        in certain circumstances may have the effect of delaying, deferring or
        preventing a change in control of the Company, may discourage bids of the
        Company's common stock at a premium over the market price of the common stock
        and may adversely affect the market price of its common stock.
Common
        stock
As
        of
        June 16, 2005, the Company had 31,795,415 shares of common stock outstanding,
        which were held of record and beneficially by approximately 66 stockholders.
        As
        of June 16, 2005, there were 10,591,085 shares of common stock underlying
        outstanding warrants and 314,230 shares of common stock underlying outstanding
        stock options.
The
        holders of the Company's common stock are entitled to one (1) vote per share on
        all matters submitted to a vote of its stockholders. In addition, subject
        to the
        preferences applicable to any shares of preferred stock outstanding, such
        holders are entitled to receive ratably such dividends, if any, as may be
        declared from time to time by the Company's Board of Directors out of funds
        legally available therefore. In the event of the dissolution, liquidation
        or
        winding up of the Company, the holders of common stock are entitled to share
        ratably in all assets remaining after payment of all liabilities of the Company
        and any preferences applicable to any shares of preferred stock outstanding.
        The
        holders of common stock do not have any subscription, redemption or conversion
        rights, nor do they have any preemptive or other rights to acquire or subscribe
        for additional, unissued or treasury shares.
Pursuant
        to the Company's bylaws, except for any matters which pursuant to Delaware law
        require a greater percentage vote for approval, the holders of a majority
        of the
        outstanding shares of common stock, if present in person or by proxy, are
        sufficient to constitute a quorum for the transaction of business at meetings
        of
        its stockholders. Except as to any matters which pursuant to Delaware law
        require a greater percentage vote for approval, the affirmative vote of the
        holders of a majority of the shares of common stock present in person or
        by
        proxy at any meeting (provided a quorum is present) is sufficient to authorize,
        affirm or ratify any act or action, including the election of the Company's
        Board of Directors.
The
        holders of the Company's common stock do not have cumulative voting rights.
        Accordingly, the holders of more than half of the outstanding shares of common
        stock can elect all of the directors to be elected in any election, if they
        choose to do so. In such event, the holders of the remaining shares of common
        stock would not be able to elect any directors. The purchasers of a majority
        of
        interests of the units that BHM recently sold in a private placement have
        the
        right to designate one member to the Board for a period of one year following
        the closing of the merger with BHM. The Company's Board of Directors is
        empowered to fill any vacancies on the Board created by the resignation,
        death
        or removal of directors.
In
        addition to voting at duly called meetings at which a quorum is present in
        person or by proxy, Delaware law and the Company's bylaws provide that
        stockholders may take action without the holding of a meeting by written
        consent
        or consents signed by the holders of a majority of the outstanding shares
        of the
        Company's capital stock entitled to vote thereon. Prompt notice of the taking of
        any action without a meeting by less than unanimous consent of the stockholders
        will be given to those stockholders who do not consent in writing to the
        action.
        The purposes of this provision are to facilitate action by stockholders and
        to
        reduce the corporate expense associated with special meetings of
        stockholders.
Warrants
BHM
        issued to certain of the selling security holders three and a half year warrants
        to purchase 400,000 shares of its common stock at an exercise price of $0.315.
        The Company has agreed to assume these warrants in connection with the
        merger.
33
BHM
        issued to certain of the selling security holders three year warrants
        exercisable into 2,952,381 shares of its common stock at an exercise price
        of
        $1.05 (the "Class A Warrants").
The
        Company agreed to assume these warrants in connection with the merger. The
        Class
        A Warrants are currently exercisable into 4,534,856 shares of the Company's
        common stock. The Class A Warrants are redeemable by the Company at a price
        of
        $.05 per Class A Warrant in the event (i) there is an effective registration
        statement covering the shares of common stock underlying the Class A Warrants
        and (ii) the closing market price of shares of common stock listed on a national
        securities market equals or exceeds $1.575 for twenty of the thirty consecutive
        trading days immediately preceding the Company's notice of redemption to the
        holders of the Class A Warrants.
BHM
        issued to certain of the selling security holders three year warrants
        exercisable into 2,952,381 shares of its common stock at an exercise price
        of
        $1.575 (the "Class B Warrants"). The Company agreed to assume these warrants in
        connection with the merger. The Class B Warrants are currently exercisable
        into
        4,534,856 shares of the Company's common stock. The Class B Warrants are
        redeemable by the Company at a price of $.05 per Class B Warrant in the event
        (i) there is an effective registration statement covering the shares of common
        stock underlying the Class B Warrants and (ii) the closing market price of
        shares of common stock listed on a national securities market equals or exceeds
        $2.10 for twenty of the thirty consecutive trading days immediately preceding
        the Company's notice of redemption to the holders of the Class B
        Warrants.
BHM
        issued three year warrants to Hunter World Markets, Inc. exercisable into
        590,476 shares of its common stock. The Company agreed to assume these warrants
        in connection with the merger. These warrants are currently exercisable 906,971
        shares of the Company's common stock.
Stock
        Options
In
        December 2004, Berman Center LLC granted options to two of its outside
        directors, Jan Fawcett and Allan Charles, exercisable into an aggregate of
        60,000 units of Berman Center, LLC. These options become exercisable into
        204,578 shares of common stock of BHM upon the reorganization of Berman Center
        LLC into BHM. The Company agreed to assume the options upon closing of the
        merger and these options are now exercisable into an aggregate of 314,230
        shares
        of the Company's common stock. The options are fully vested and expire ten years
        from the date of grant.
Market
        Price of The Company's Common Stock
The
        price
        of the Company's common stock will likely fluctuate in the future. The stock
        market in general has experienced extreme stock price fluctuations in the
        past
        few years. In some cases, these fluctuations have been unrelated to the
        operating performance of the affected companies. Many companies have experienced
        dramatic volatility in the market prices of their common stock. The Company
        believes that a number of factors, both within and outside its control, could
        cause the price of the Company's common stock to fluctuate, perhaps
        substantially. Factors such as the following could have a significant adverse
        impact on the market price of its common stock:
·
The
                  Company's ability to obtain additional financing and, if available, the
                  terms and conditions of the
                  financing;
·
The
                  Company's financial position and results of
                  operations;
·
Concern
                  as to, or other evidence of, the safety or efficacy of the Company's
                  proposed products and services or its competitors' products and
                  services;
·
Announcements
                  of technological innovations or new products or services by the
                  Company or
                  its competitors;
·
U.S.
                  and foreign governmental regulatory
                  actions;
·
The
                  development of litigation against the
                  Company;
34
·
Period-to-period
                  fluctuations in the Company's operating
                  results;
·
Changes
                  in estimates of the Company's performance by any securities
                  analysts;
·
Possible
                  regulatory requirements on the Company's
                  business;
·
The
                  issuance of new equity securities pursuant to a future
                  offering;
·
Changes
                  in interest rates;
·
Competitive
                  developments, including announcements by competitors of new products
                  or
                  services or significant contracts, acquisitions, strategic partnerships,
                  joint ventures or capital
                  commitments;
·
Variations
                  in quarterly operating results;
·
Change
                  in financial estimates by securities
                  analysts;
·
The
                  depth and liquidity of the market for the Company's common
                  stock;
·
Investor
                  perceptions of the Company and Dr. Berman;
                  and
·
General
                  economic and other national
                  conditions.
Delaware
        Anti-Takeover Law and Charter and Bylaw Provisions
The
        Company is subject to Section 203 of the Delaware General Corporation Law.
        This
        provision generally prohibits a Delaware corporation from engaging in any
        business combination with any interested stockholder for a period of three
        years
        following the date the stockholder became an interested stockholder, unless:
·
prior
                  to such date, the Board of Directors approved either the business
                  combination or the transaction that resulted in the stockholder
                  becoming
                  an interested stockholder;
·
upon
                  consummation of the transaction that resulted in the stockholder
                  becoming
                  an interested stockholder, the interested stockholder owned at
                  least 85%
                  of the voting stock of the corporation outstanding at the time
                  the
                  transaction commenced, excluding for purposes of determining the
                  number of
                  shares outstanding those shares owned by persons who are directors
                  and
                  also officers and by employee stock plans in which employee participants
                  do not have the right to determine confidentially whether shares
                  held
                  subject to the plan will be tendered in a tender or exchange offer;
                  or
·
on
                  or subsequent to such date, the business combination is approved
                  by the
                  Board of Directors and authorized at an annual meeting or special
                  meeting
                  of stockholders and not by written consent, by the affirmative
                  vote of at
                  least 66 2/3% of the outstanding voting stock that is not owned
                  by the
                  interested stockholder.
Section
        203 defines a business combination to include:
·
any
                  merger or consolidation involving the corporation and the interested
                  stockholder;
·
any
                  sale, transfer, pledge or other disposition of 10% or more of the
                  assets
                  of the corporation involving the interested stockholder;
·
subject
                  to certain exceptions, any transaction that results in the issuance
                  or
                  transfer by the corporation of any stock of the corporation to
                  the
                  interested stockholder;
35
·
any
                  transaction involving the corporation that has the effect of increasing
                  the proportionate share of the stock of any class or series of
                  the
                  corporation beneficially owned by the interested stockholder; or
·
the
                  receipt by the interested stockholder of the benefit of any loans,
                  advances, guarantees, pledges or other financial benefits provided
                  by or
                  through the corporation.
In
        general, Section 203 defines an "interested stockholder" as any entity or person
        beneficially owning 15% or more of the outstanding voting stock of a
        corporation, or an affiliate or associate of the corporation and was the
        owner
        of 15% or more of the outstanding voting stock of a corporation at any time
        within three years prior to the time of determination of interested stockholder
        status; and any entity or person affiliated with or controlling or controlled
        by
        such entity or person.
The
        Company's certificate of incorporation and bylaws contain provisions that could
        have the effect of discouraging potential acquisition proposals or making
        a
        tender offer or delaying or preventing a change in control of the Company,
        including changes a stockholder might consider favorable. In particular,
        the
        Company's certificate of incorporation and bylaws, as applicable, among other
        things, will:
·
provide
                  the Company's board of directors with the ability to alter its bylaws
                  without stockholder approval;
·
provide
                  for an advance notice procedure with regard to the nomination of
                  candidates for election as directors and with regard to business
                  to be
                  brought before a meeting of
                  stockholders;
·
provide
                  that vacancies on the Company's board of directors may be filled by a
                  majority of directors in office, although less than a quorum.
Such
        provisions may have the effect of discouraging a third-party from acquiring
        the
        Company, even if doing so would be beneficial to its stockholders. These
        provisions are intended to enhance the likelihood of continuity and stability
        in
        the composition of the Company's board of directors and in the policies
        formulated by them, and to discourage some types of transactions that may
        involve an actual or threatened change in control of the Company. These
        provisions are designed to reduce the Company's vulnerability to an unsolicited
        acquisition proposal and to discourage some tactics that may be used in proxy
        fights. The Company believes that the benefits of increased protection of
        its
        potential ability to negotiate with the proponent of an unfriendly or
        unsolicited proposal to acquire or restructure the Company outweigh the
        disadvantages of discouraging such proposals because, among other things,
        negotiation of such proposals could result in an improvement of their terms.
        However, these provisions could have the effect of discouraging others from
        making tender offers for the Company's shares that could result from actual or
        rumored takeover attempts. These provisions also may have the effect of
        preventing changes in the Company's management.
ITEM
                5.02
DEPARTURE
                  OF DIRECTORS AND PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT
                  OF
                  PRINCIPAL OFFICERS.
Following
        the merger with BHM, Samuel P. Chapman, Laura A.C. Berman, Allan Charles,
        Alger
        Chapman, Stuart Cornew, Jan Fawcett, Robert Goodmen and Michael Romano, each
        of
        whom are directors of BHM, were appointed to the Board of Directors of the
        Company. In addition, the Company appointed Samuel P. Chapman as the Company's
        Chairman and Chief Executive Officer, Laura A.C. Berman as President and
        William
        McDunn as Chief Financial Officer. Todd Ficeto resigned from all of his officer
        and director positions.
For
        more
        information regarding the directors and principal officers of the Company,
        please refer to Item 5.01, above.
36
ITEM
        5.03
AMENDMENTS
        TO CERTIFICATE OF INCORPORATION OR BYLAWS; CHANGE IN FISCAL
        YEAR.
On
        June
        20, 2005, the Company filed a Certificate of Incorporation to effectuate
        (i) a
        reincorporation from the State of Georgia to the State of Delaware and (ii)
        a
        corporate name change from "LB Center, Inc." to "Berman Center,
        Inc."
A
        copy of
        the Certificate of Incorporation is attached hereto as Exhibit 3.1.
In
        connection with the reincorporation, the Company adopted new Bylaws to conform
        to the corporate laws of the State of Delaware. A copy is attached hereto
        as
        Exhibit 3.2.
For
        more
        information pertaining to the Company's Certificate of Incorporation and Bylaws,
        please refer to Item 5.01, above.
ITEM
        9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(a)
Financial
        Statements of Business Acquired. No financial statements are filed herewith.
        The
        Company will file the required financial statements by amendment hereto not
        later than 71 days after the date this Current Report on Form 8-K must be
        filed.
(b)
Pro
        Forma
        Financial Statements. No pro forma financial statements are filed herewith.
        The
        Registrant will file the required pro forma financial statements by amendment
        not later than 71 days after the date this Current Report on Form 8-K must
        be
        filed.
(c)
Exhibits
2.1
Agreement
                  and Plan of Merger dated June 3, 2005 by and among Berman Center,
                  Inc.,
                  LBC MergerSub, Inc. and Berman Health and Media, Inc.
3.1
Certificate
                  of Incorporation of the Registrant.
3.2
By-Laws
                  of the Registrant.
4.1
Form
                  of Stock Purchase Warrant (Class A) dated as of June 16, 2005 issued
                  by
                  the Registrant to the Warrant Holders indicated on the schedule
                  thereto.
4.2
Form
                  of Stock Purchase Warrant (Class B) dated as of June 16, 2005 issued
                  by
                  the Registrant to the Warrant Holders indicated on the schedule
                  thereto.
4.3
Form
                  of Stock Purchase Warrant dated as of June 16, 2005 issued by the
                  Registrant to Hunter World Markets, Inc.
10.1
Employment
                  Agreement dated June 16, 2005, by and among the Registrant and
                  Dr. Laura
                  A.C. Berman.
10.2
Placement
                  Agent Agreement dated April 11, 2005 by and among Berman Health
                  and Media,
                  Inc. and Hunter world Markets, Inc.
99.1
Press
                  Release.
37
SIGNATURES
Pursuant
        to the requirements of the Securities Exchange Act of 1934, the Registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized.
BERMAN
                CENTER, INC.
Date: June
                22, 2005
By:
/s/
Samuel
                P. Chapman
Name
Samuel
                P. Chapman
Title:
Chief
                  Executive Officer
38