"ARBITRAGE" PROFORMA P / L REVENUE Low High FOREIGN SALES Foreign Sales Closed 4.387.000 4.387,000 Foreign Sales Remaining 3.465.000 4.422,000 Total Foreign Sales 7,852,000 8,809,000 DOMESTIC (net) 2,250,000 4,250,000 NY TAX CREDIT 1,950,000 1,950,000 Total Revenue 12,052,000 15,009,000 Less Production Loans (6,694.875) (6.694.875) 5,357,125 8,314,125 Less Costs Marketing Fee (75,000) (75,000) Distribution Expenses (80,000) (80,000) Foreign Sales Fee (some already paid from deposits) 7.5% (309,141) (380,916) Guild Residuals 5.6% (565,712) (731,304) Foreign Withholding Tax 1.0% (78,520) (88,090) Collection /Accounting Fees 0.6% (43,186) (48,450) (1,151.559) (1.403.759) Total Revenue net of Sales Costs 4,205,566 6,910,366 Equity Investment (3.200.000) (3.200.000) Gross Profit 1,005,566 3,710,366 Equity Preferred Return 25% (800.000) (800.000) Net Profit 205,566 2,910,366 EFTA01086444