DRAFT Licensing and Merchandising Plan October 5, 2011

DRAFT page 1 Executive Summary Our responsibility for securing Smurfs merchandise licensees and retail space is limited to North American based companies and global “primary category” deals, for which we are compensated at 30% - 51% agency commissions Our go forward plan is to maximize the opportunity in these categories with additional headcount –5 additional FTEs at SPCP –Double Smurfs merch revenue –With a $600K annual investment in incremental headcount, increase SPE’s Smurf merch revenue from $6.3MM (Smurfs 1) to $12.8MM (Smurfs 2) on an ultimate basis  Domestic (which we drive) from $4.0MM to $8.2MM  International (which is a passive interest) from $2.3MM to $4.6MM We will attempt to restructure deal terms with Lafig that could ultimately drive upside for both parties and we have a reasonable chance of gaining their support –Release of frozen non-theatrical content rights (e.g., DTV, TV animation) –Establishment of CMF funded/co-funded by Lafig –Control of international retail management to SPE We will also request full control of international, with related commissions topped up to domestic levels, but Lafig is unlikely to accept unless it takes place between Smurfs 2 and Smurfs 3

DRAFT page 2 Smurfs Relationship Overview SPE is the agent for North America (U.S. and Canada) only Lafig controls international SPE has no licensor participation and can be legally dismissed as the agent for North America, which would leave SPE with zero overall participation Roles 51% for licenses solicited by SPE covering North America only 30% of licenses (“global licenses”) with U.S. companies solicited by SPE 15% of licenses solicited by Lafig covering international territories only General SPE Commission Rates

DRAFT page 3 Smurfs 1 – Domestic Value ChainSmurfs 1 – International Value Chain Smurfs 1 – Global Value Chain We are projecting Smurfs 1 SPE worldwide share of $6MM, which implies a $347MM global retail spend with 40% domestic vs. 60% international split 60% 12% 40% 60% 12% 15% 60% 12% 25% ($ in millions)

DRAFT page 4 Smurfs 2 Retail Estimate vs. Select Film Properties Retail Sales: Life-to-Date Retail as % of WWBO Average: $267 Average: 47% Hello Kitty: Toy Story 3: Cars 2: Spider-Man: Peanuts: $8.2B $5.6B $5.0B $4.0B Toy Story 3: Cars 2: Spider-Man: 527% 908% 495% (1) Hello Kitty, Toy Story 3, Cars 2, Spider-Man and Peanuts converted to retail ultimate by multiplying by 2 years. (1)

DRAFT page 5 Smurfs 1 vs. 2 Merch Performance (000s)

DRAFT page 6 Smurfs Licensing Revenue Analysis Note: Box indicates categories covered by new headcount. Smurfs 2 domestic business plan assures revenues double and category shares % of total are consistent with industry averages

DRAFT page 7 SPCP will need 5 additional heads to support Smurfs 2 merch target Global SVP Domestic VPAdm Asst Director Paper Products, BTS, Publishing Exec Dir Retail Director Toys, Games, Sporting Goods Coordinator Retail Director Hardlines, Food/Bev, HBA Director Interactive, Video, Mob Apps Manager Director Apparel, Access, Footwear Director Home Décor, Housewares, Gift/Novelty, Collectibles Coordinator New Position Current

DRAFT page 8 Smurfs 2 vs. Smurfs 1 Incremental Contribution (000s) (1)Incremental headcount cost assumes 4 Director-level hires and 1 Coordinator with 60% of time spent on Smurfs over 3.5 year time period.

DRAFT page 9 Cross-SPE Opportunities for Retail Contribution SPCP SPA SPHE SPT Resulting Campaign Secure in-store promotion Secure licensee to provide Christmas plush Produce additional content, e.g., “Smurfs: A Christmas Carol” Promote “Smurfs: A Christmas Carol” on DVDs & Blu-ray with sticker on front of package Sell “Smurfs: A Christmas Carol” into TV Holiday Campaign DVD/Blu-ray with short and plush featured at retail on end caps TV special increases awareness and drives purchase 2011 Planned 2012 Potential

DRAFT page 10 Target Deal Terms to Pursue Restructuring Release of frozen non- theatrical content rights (e.g., DTV, TV animation) to SPE TermResulting Upside(s) for SPE Stand-alone profitable brand extensions Support for merch between films and with expanded demo Modest asks with reasonable chance for Lafig support Lafig funding / co-funding of CMF Increased retail support for merch Int’l retail management to SPE (distinct from ownership of int’l licensee relationships) Retail management fee to SPE Increased SPE control of int’l film promotion Incremental $1.5MM ultimate contribution (1) to SPE Full control of int’l to SPE SPE int’l commissions increased to domestic levels Incremental $7.7MM ultimate contribution (2) to SPE Aggressive ask Lafig is unlikely to support (1)Assumes additional 5% fee to SPE (i.e., 15% + 5% = 20% total SPE commission). Would require the conversion of one consultant into FTE plus one full-time coordinator hire. (2)Assumes 25% increase in int’l merch commission (i.e., 15% + 25% = 40% commission in-line with domestic wtd. Avg. commission).