Common use of WowWee Clause in Contracts

WowWee. The comparative summary showing the financial results of WowWee for the last six years and the forecasted results for 2010 is presented below. The financial results include Sablon starting in August 2008. Years ended and ending December 31 1,2,3,4& 5 Budget FY 20106 Net sales revenue 60,048 137,153 124,970 104,669 93,395 41,919 66,442 97,778 70,000 Increase (decrease in net sales revenue) N.A. 128.4 % -8.9 % -16.2 % -10.8 % -42.2 % -28.9 % N.A. ▇.▇. ▇▇▇▇▇ profit 22,555 58,172 38,498 31,008 26,995 5,752 7,108 29,160 21,000 As a % of net sales revenue 37.6 % 42.4 % 30.8 % 29.6 % 28.9 % 13.7 % 10.7 % 29.8 % 30.0 % Selling, general and administrative expenses 16,867 30,653 34,163 28,636 38,485 32,089 45,834 25,013 25,013 As a % of net sales revenue 9.5 % 20.1 % 3.5 % 2.3 % -12.3 % -62.8 % -58.3 % 4.2 % -5.7 % [1] Numbers from 2004 to 2006 are taken directly from the due diligence draft report on WowWee dated July 5, 2007. [2] Numbers in 2007 are based on WowWee’s statement of earnings for fiscal year 2007. [3] Numbers in 2008 are based on 2008 10-K. [4] 2009F numbers have been estimated by Management based on available information up to March 12, 2010. [5] Numbers for the period of 9 months ended September 30, 2009 are based on the 10-Q for the period ended September 30, 2009 [6] Based on the budget prepared by Management as at January 15, 2010. These amounts exclude other income of $3M from the payment processing business.